DIT Module1A Trainee Manual Print

Module 1A: AIS, AST, IRLA, and OLTAS

Trademarks Acknowledgements

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Copyright © Income Tax Department of India. All rights reserved.

No part of this publication may be reproduced, stored in retrieval system or transmitted in any form, or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. Item Code : 131178

Training Schedule

Topic/Activity Duration

Day 01

Introduction 15 minutes

Introduction to ITD 30 minutes

Introduction to AIS

Topic 01: Introduction to AIS 15 minutes

Transferring and Restoring PANs

Topic 02: Transferring PANs 30 minutes

Tea Break 15 minutes

Topic 02: Transferring PANs (contd.) 15 minutes

Practice Session 30 minutes

Topic 03: Restoring PANs 10 minutes


Introduction to AST

Topic 09: Introduction to AST 15 minutes

Processing Returns u/s 143(1)

Topic 10: Creating Bundles 10 minutes

Topic 11: RRR 15 minutes

Lunch Break 60 minutes


Topic 12: Adding Returns 30 minutes

Topic 13: Managing Different Types of Returns

20 minutes



Topic 14: Initiating Processing 15 minutes

Topic 15: Processing Returns u/s 143(1) 30 minutes

Topic 16: Maintaining Tax Payments 30 minutes

Q & A 15 minutes

Session Summary 15 minutes

Day 02

Recap 15 minutes

Updating Address in AST

Topic 17: Updating Address in AST 20 minutes





Rectification, Penalty, and Scrutiny

Topic 18: Rectification Petition and Order 25 minutes

Topic 19: Maintaining Adjustments/Additions 25 minutes

Topic 20: Penalty Order and Demand 25 minutes



Topic 21: Scrutiny u/s 143(3) 40 minutes

Issuing Refunds

Topic 22: Issuing Refunds 20 minutes



Day 03

Recap 15 minutes

Topic 23: Refund Banker 20 minutes

Proceeding Outputs

Topic 24: Proceeding Outputs and Queries 20 minutes

Generating Reports

Topic 29: Generating Reports 35 minutes


Topic 29: Generating Reports (contd.) 15 minutes


Introduction to OLTAS

Topic 31: Introduction to OLTAS 30 minutes

Maintaining Challans in OLTAS

Topic 32: Maintaining Challans in OLTAS 30 minutes


OLTAS 31 and e-Payment

Topic 33: OLTAS 31 20 minutes


Topic 34: e-Payment 20 minutes

Introduction to IRLA

Topic 35: Introduction to IRLA 40 minutes

Tea Break 15 minutes RSA Token and Lotus Notes Email 45 minutes


Q and A 45 minutes

Total Duration 21 hours

Additional Topics Available on the LMS for Self-Study

Topic/Activity Duration

Topic 04: De-duplicating PANs 15 minutes Topic 05: Updating PAN Address 30 minutes Topic 06: Adding Assessee Events 15 minutes Topic 07: Restoring Original Data 20 minutes Topic 08: Generating Reports in AIS 15 minutes Topic 25: Date of Service 20 minutes Topic 26: Give Effect to Orders 20 minutes Topic 27: Give Effect to External Orders 40 minutes

Topic 28: Audit Objection and Prosecution 20 minutes Topic 30: Maintaining Notices 20 minutes Topic 36: Entering Arrears in IRLA 20 minutes Topic 37: Arrears: Stay, Write-off, and Installments 30 minutes

Topic 38: Generating Reports and Ledgers 30 minutes

Table of Contents

Before You Begin - 8 -

Accessing the Learner Management System - 8 - Icons used in the Trainee Manual - 11 -

Introduction to AIS - 12 - Topic 01: Introduction to AIS - 12 -

Transferring, Restoring, and De-Duplicating PANs - 20 - Topic 02: Transferring PANs - 20 - Practice Session - 34 - Topic 03: Restoring PANs - 35 - Practice Session - 41 - Topic 04: De-duplicating PANs - 42 -

Updating PAN Details - 48 - Topic 05: Updating PAN Address - 48 - Topic 06: Adding Assessee Events - 51 -

Restoring Data and Generating Reports in AIS - 57 - Topic 07: Restoring Original Data - 57 - Topic 08: Generating Reports in AIS - 62 -

Introduction to AST - 72 - Topic 09: Introduction to AST - 72 -

Processing Returns u/s 143(1) - 81 - Topic 10: Creating Bundles - 81 - Topic 11: RRR - 86 - Practice Session - 91 - Topic 12: Adding Returns - 92 - Topic 13: Managing Different Types of Returns - 102 - Practice Session - 111 - Topic 14: Initiating Processing - 112 - Topic 15: Processing Returns u/s 143(1) - 117 - Topic 16: Maintaining Tax Payments - 134 -

Updating Address in AST - 146 - Topic 17: Updating Address in AST - 146 - Practice Session - 152 -

Rectification, Penalty, and Scrutiny - 154 - Topic 18: Rectification Petition and Order - 154 - Topic 19: Maintaining Adjustments/Additions - 162 - Topic 20: Penalty Order and Demand - 166 - Practice Session - 171 - Topic 21: Scrutiny u/s 143(3) - 173 -

Issuing Refunds - 184 - Topic 22: Issuing Refunds - 184 - Practice Session - 194 - Topic 23: Refund Banker - 195 - 20 minutes - 195 -

Proceeding Outputs - 200 - Topic 24: Proceeding Outputs and Queries - 200 - Topic 25: Date of Service - 207 -

Giving Effect to Orders - 211 - Topic 26: Give Effect to Orders - 211 - Topic 27: Give Effect to External Orders - 218 -

Audit Objection and Prosecution - 226 - Topic 28: Audit Objection and Prosecution - 226 -

Generating Reports in AST - 233 - Topic 29: Generating Reports - 233 - Practice Session - 257 -

Topic 30: Maintaining Notices - 258 -

Introduction to OLTAS - 261 - Topic 31: Introduction to OLTAS - 261 -

Maintaining Challans in OLTAS - 269 - Topic 32: Maintaining Challans in OLTAS - 269 - Topic 33: OLTAS 31 - 274 - Practice Session - 277 - Topic 34: e-Payment - 278 -

Introduction to IRLA - 280 - Topic 35: Introduction to IRLA - 280 -

Entering Arrears in IRLA - 293 - Topic 36: Entering Arrears in IRLA - 293 - Topic 37: Arrears: Stay, Write-off, and Instalments - 296 -

Generating Reports and Ledgers in IRLA - 303 - Topic 38: Generating Reports and Ledgers - 303 -

Appendix A – Frequently Asked Questions - 312 - AIS - 312 - AST - 314 - OLTAS - 319 - IRLA - 319 -

Appendix B – Troubleshooting - 322 - AIS - 322 - AST - 324 - OLTAS - 326 -

Appendix C – Glossary - 327 - AIS - 327 - AST - 328 - OLTAS - 329 - IRLA - 329 -

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Before You Begin

Accessing the Learner Management System

You need to access the Learner Management System (LMS) to view the courses. To launch the LMS:

1. Open the Internet browser.

2. Type http://10.152.2.21/cliks/clikslogin in the address bar and press the Enter key. A RSA Authentication prompt will appear.

3. Type your username in the User Name field and RSA key in the Password field.

http://10.152.2.21/cliks/clikslogin

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4. After successful authentication, the LMS login page will be displayed.

5. Type your LMS user name in the Employee Code field and password in the Password field.

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6. After successful login to the LMS, the home5 page will appear.

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Icons used in the Trainee Manual

Various icons have been used in the Trainee Manual to indicate the type of activity or content.

Below is a list of the icons used in the Trainee Manual and what they represent.

Icon Icon Name Description

Duration This icon indicates the time it will take to complete a topic.

Concept This icon indicates conceptual knowledge about a topic.

Task This icon indicates application tasks.

Check Your Understanding/

Answers

This icon indicates both the question at the end of each topic and the answers to these questions.

Notes This icon indicates pages where you can write your own notes.

Practice This icon indicates practice assignments.

Summary This icon indicates the key learning points for a topic.

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Introduction to AIS

Duration

Topic 01: Introduction to AIS

15 minutes

Concept

An Overview

This topic will provide an overview of AIS, its features, the functions performed by AIS, and the AIS user interface.

By the end of this topic, you will be able to:

Recognize the basic features of AIS.

Identify the basic functions of AIS.

Identify the important elements of the AIS user interface.

Identify the function keys used in AIS.

Understand the List of Values (LoV) functionality.

Understand the jurisdiction hierarchy in AIS.

Describe the PAN allotment workflow.

Concept

What is it?

AIS maintains the records of each taxpayer in the country by allotting a unique number to each taxpayer. This number is known as PAN. PAN is used to identify a taxpayer across various ITD modules. AIS is also referred to as the hub around which all the other ITD modules operate.

AIS allows online PAN allotment, PAN data maintenance, assessee events maintenance, and Income Tax jurisdiction hierarchy maintenance.

Concept

Features of AIS

AIS has the following features:

It is an online application. Data is stored on the back-end servers. An AIS user can access the application by specifying a valid username and password.

It is a menu-driven and Windows-based application. AIS has a Graphical User Interface (GUI) with various elements, such as menu bar, toolbar, radio buttons, checkboxes, list boxes, and combo boxes. These user-friendly GUI elements simplify the task of performing various tasks and navigation across screens.

It is a parameter-driven system. A parameter is the value entered in a field. AIS enables you to

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specify parameters for querying the database. Based on the specified parameters, AIS retrieves data from the database.

It is a secure system. Security is inbuilt in the system and only valid users with assigned roles can access the application after authentication. To maintain security in the system, AIS has six classes of users, Class A to Class F, depending upon their access or update rights. In addition, the application captures the user identification details along with the timestamp for all users accessing the application. Any modifications to the database are tracked for each user in an audit log.

Concept

Functions of AIS

AIS enables you to perform various functions. Some of the important functions are:

Allotting PAN: AIS enables users with the role of Batch Administrator to allot PANs based on the details specified by the applicants in Form 49A. The initial steps for PAN allotment are performed through service providers, such as UTITSL and National Securities Depository Limited (NSDL). You will learn more about the PAN allotment procedure later in this topic.

Maintaining jurisdiction hierarchy: AIS enables the RCC officials to set up and define jurisdiction hierarchy. This helps in maintaining the details of all AOs, ACITs, DCs, CITs, and CCITs and the links between them.

Maintaining PAN holder data: AIS allows changes to be made to the assessee database. An AO can make modifications to reflect any changes in PAN holder details, such as change in address or office name. However, an AO cannot change certain details such as name, father’s name, and date of birth of the PAN holder.

Maintaining PAN holder events: You can also record events such as death, liquidation, dissolution, partition, merger, and split related to PAN holder.

Maintaining PAN: AIS enables you to maintain PAN. You can delete or deactivate duplicate PANs, restore wrongly deleted PANs, and restore original PAN details.

Generating reports: AIS allows generating a report to a file, printer, or screen. The reports are generated as lis or pdf files. You can generate various reports to view the statistics for PAN allotment, PAN card, assessee details, and transfer orders.

Transferring PAN: An AO can transfer the PANs from one

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jurisdiction to the other. However, an AO can only transfer PANs that are under his or her jurisdiction.

Concept

Accessing AIS

To access any module, you first need to log in to the ITD application.

To access AIS:

1. Open the Internet Explorer and type the URL https://itdapp.incometax.net in the address bar to access the ITD application.

2. Type the username and password in the Authentication Proxy Login page for RSA authentication.

3. Click the OK button to log in. This displays the Income Tax Application login screen.

4. Type the application username and password. Then, click the OK button to log in to the ITD application. This displays the ITD Main Menu screen.

5. Click the AIS menu to access the AIS module. This displays the AIS home page.

Concept

The AIS User Interface

The AIS user interface is divided into the following four parts:

Menu Bar: This is the first part. The menu bar is common for all screens in AIS. It appears on the top of the screen. Clicking any menu shows a list of menu items to perform various tasks.

Toolbar: This is the second part. It has multiple icons that help to perform key tasks on any screen.

Main Page: This is the third and the largest part. This is the area where the forms or fields will be displayed for you.

Message Bar: This is the last part. It has two parts:

o Message Line: It is the second last line on the screen. It displays:

Messages in response to an erroneous or unconventional action taken.

AIS-specific information messages related to errors or warning messages. You need to take a corrective action for these messages.

Alerts, which appear like small pop-up windows and request confirmation, warn about problems, or prompt for making decisions.

o Status Line: It is the last line on the screen that contains indicators such as the sequence of the current record and status of the query.

https://itdapp.incometax.net

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Concept

Menu Bar

The following seven menu options are present on the AIS menu bar:

Action: Contains options that enable you to perform various operations, such as saving changes to database, clearing working area, and printing screens.

Edit: Provides options for performing tasks related to editing, such as coping and pasting selected text.

Field: Contains options that enable you to perform various tasks, such as navigating from one screen to another.

Record: Provides options that enable you to manage records, such as options to navigate between records and clear records.

Query: Provides options for entering and executing queries.

Help: Provides information to help the users in performing various tasks in AIS.

Window: Contains the standard Windows 3.1 features. However, using them is not recommended because they can change the location and size of the AIS screens.

Concept

Toolbar

The icons on the toolbar in AIS have an image and an abbreviated label. Clicking the icon allows you to perform the relevant step. For example, clicking the SAVE icon allows you to save a record or form.

A button may be enabled or disabled depending on the context. All highlighted buttons indicate that they are enabled and active; whereas, all dimmed buttons are disabled and inactive.

There are multiple icons on the toolbar. The following are the most frequently used icons:

ENT QRY: Allows you to enter a query and specify the query conditions.

EXEC: Executes the query with the specified conditions and displays the results.

SAVE: Saves all changes to the database. If an error message is displayed, you need to resolve it and then, click the SAVE icon again.

CLEAR: Clears the values from all fields of the current record. However, clicking this icon does not delete the record from the database.

EXIT: Enables you to exit from the current screen.

Concept

The Function Keys

The following are some of the function and shortcut keys that you can use for functions otherwise available through menus or buttons:

F1: Help

F7: Enter a query

F8: Execute a query

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F10: Accept or save

F9: LoV

Ctrl+P: Print record

Ctrl+Q: Exit

Tab or Ctrl+Tab: Next item or field

Concept

The LoV Functionality

AIS provides the LoV functionality for selecting a value from a predefined list. The LoV for a field is displayed automatically when you enter an invalid value in the field.

For example, if you enter an invalid state code and move to the next field, the LoV for state codes is displayed automatically. You can then select a valid state code from the LoV.

To view the LoV for any field, click the LoV icon for that field or press the F9 key. This displays a window with the list of valid values.

Concept

Jurisdiction Hierarchy

As mentioned earlier, one of the primary functions of AIS is maintaining jurisdiction hierarchy, which is defined by RCC.

Defining the jurisdiction hierarchy involves setting up and defining codes for various positions in the department, such as:

AOs

Range Incharge

CITs

CCITs

The defined codes must be in the following order: 1. Area code 2. CCIT code 3. CIT code 4. Range code 5. AO code

After defining the codes, each position in the jurisdiction hierarchy is associated with a particular code.

Concept

PAN Allotment

One of the most important functions of AIS is PAN allotment.

The workflow for allotting PANs in AIS involves the following steps:

1. In the first step, an applicant applies for a PAN to a service provider, such as NSDL or UTI, by filling up the details in Form

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49A. 2. In the second step, the service provider validates the data

specified by the applicant in Form 49A. 3. Next, the service provider sends the validated data to RCC. 4. At RCC, the Batch Administrator allots a PAN to the applicant. 5. Then, the allotted PAN details are sent to the service provider. 6. Finally, the service provider sends the intimation letter along

with the PAN card to the applicant.

Fig: Workflow for PAN allotment

Concept

Exiting from AIS

After you have completed your tasks for the day, you can exit the AIS module. To exit from AIS, click the EXIT icon on the toolbar till you reach the main menu.

If you exit from the ITD application, you will need to log in again.

CYU

Q1. Which of the following function keys will you press to execute a query? (There is only one correct answer.)

a. F1 b. F7 c. F8 d. F10

Q2. Which of the following options correctly lists the sequence in which the codes are defined while setting up jurisdiction hierarchy? (There is only one correct answer.)

a. Area code, CIT code, CCIT code, AO code, and Range code b. Area code, CCIT code, CIT code, Range code, and AO code

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c. Range code, Area code, CCIT code, CIT code, and AO code

Summary

Key Points to Remember

AIS is an online Windows-based application. It maintains records of each taxpayer in the country by allotting a unique PAN.

AIS allows you to perform various functions, such as allotment of PAN, maintenance of jurisdiction hierarchy, maintenance of PAN holder data and events, generation of reports, and transfer of PAN.

The AIS user interface is divided into four parts: menu bar, toolbar, main page, and message bar.

AIS provides various function and shortcut keys for performing functions that are otherwise available through menus or buttons.

AIS provides the LoV functionality for selecting a value from a predefined list.

The jurisdiction hierarchy must be set up and defined for various positions in the department.

The workflow for allotting PANs in AIS involves multiple steps: 1. An applicant applies for a PAN to the service

provider. 2. The service provider validates the data. 3. The service provider sends the validated data to

RCC. 4. The Batch Administrator at RCC allots a PAN. 5. The allotted PAN details are sent to the service

provider. 6. The service provider sends the PAN to the

applicant.

Answers

Q1:c ; Q2:b

Notes

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Transferring, Restoring, and De-Duplicating PANs

Duration

Topic 02: Transferring PANs

45 minutes

Concept

An Overview

AIS enables you to transfer PANs from the jurisdiction of one AO to the jurisdiction of another AO. In this topic, you will learn the steps to transfer PANs across jurisdictions.


Identify the situations in which PAN is transferred.

Identify the workflow involved in transferring PANs having non-individual status.

Transfer PANs having non-individual status.

Identify the workflow involved in transferring PANs having individual status.

Transfer PANs having individual status.

Concept

Situations in Which PAN is Transferred

The transfer of PANs, which is also known as transfer of jurisdiction of assessees, can take place in any of the following situations:

Orders passed u/s 120 of the Income Tax Act: Orders u/s 120 are passed by a CIT, CCIT, or DG to define or redefine the jurisdiction of AOs. In case of redefinition of the jurisdiction of AOs, usually more than one assessee is affected. Therefore, in such instances the assessees are transferred as a group from their respective jurisdictions to the new jurisdiction.

Orders passed u/s 127 of the Income Tax Act: Orders u/s 127 are passed by a CIT, CCIT, or DG to transfer specific assessees to a new jurisdiction.

Request for transfer of jurisdiction by the assessee: An assessee may request for a transfer of jurisdiction due to change in the address or nature of business of the assessee. On receipt of the request for transfer, the ITD validates the request to confirm whether or not the transfer request is appropriate. If the request is appropriate, an order u/s 127 is passed by the CIT, CCIT, or DG to bring the transfer into effect.

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Concept

Parameters

In AIS, the process involved in transferring PANs depends on various parameters, such as:

Status of the PAN:

Individual

Non-individual

The jurisdiction across which the PANs are transferred:

Within Range

Within CIT

Across CIT

Within RCC

Across RCC

Concept

Transferring PANs Having Non-Individual Status

The process of transferring PANs having non-individual status involves multiple steps:

1. In the first step, the AO creates the transfer order based on the order passed by the CIT, CCIT, or DG.

2. Next, the AO builds the transfer order list. In this step, the AO includes the assessees listed in the order passed by CIT, CCIT, or DG, into the transfer order list. Note that if the transfers are within the Range, then the AO builds the transfer order list. If the transfers are within the CIT, then the Range Incharge builds the transfer order list. However, if the transfers are across CIT or Area, the CIT builds the transfer order list.

3. In the third step, the transferring officer confirms the transfer order list as per the rules laid. If the transfers are within the Range, the AO can confirm the transfer order list. If the transfers are within the CIT, then the Range Incharge confirms the transfer order list. If the transfers are across CIT or Area, the CIT confirms the transfer order list.

4. Finally, the AIS Admin executes the transfer order.

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Fig: Workflow for transferring PANs having non-individual status

Task

Creating Transfer Order

To initiate the process of transferring PANs, the AO first needs to create the transfer order using the TRANSFER ORDER MAINTENANCE screen. To do so, the following information should be available:

Reference number

Section number

Order date

Effective date

Issuing authority

Officer code

AO code

To create a transfer order:

1. Click the Maintenance menu on the AIS main screen.

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Fig: The Maintenance menu on the AIS main screen

2. Select the Transfer Order Details option. This displays the TRANSFER ORDER MAINTENANCE screen.

Fig: The TRANSFER ORDER MAINTENANCE screen

3. Type a value in the Reference No. field. 4. Type the date of passing the order in the Order Date field.

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5. Type the effective date of transfer in the Effective Date field. 6. Select a valid section number from the Section No. drop-down list. 7. Select the Assessing Officer option from the Issuing Authority drop-

down list. 8. Type a value in the AO Code field. 9. Click the LoV icon corresponding to Text Of Transfer Order and select

the appropriate option. This displays the transfer order details. 10. Click the SAVE icon. The transfer order is saved. 11. Click the EXIT icon

Task

Building Transfer Order List

After creating the transfer order, the AO creates the transfer order list using the TRANSFER ORDER LIST screen.

Fig: The TRANSFER ORDER LIST screen

The AO can create this list using two methods:

Specify individual PANs one at a time.

Select a group of assessees based on specific criteria, such as status, returned income, or name of office or employer for transfer u/s 120.

To build the transfer order list, the following information should be available:

Sequence number

Reference number

Section number

Order date

Effective date

Issuing authority

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To build a transfer order list:



2. Select the Transfer Order Details option. This displays the TRANSFER ORDER MAINTENANCE screen.

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Fig: The TRANSFER ORDER MAINTENANCE screen

3. Click the BuildList button. This displays the TRANSFER ORDER LIST screen.

Fig: The TRANSFER ORDER LIST screen

4. Type a value in the List Code field. 5. Click the EXEC icon. This displays the Build New Transfer List

window.

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Fig: The Build New Transfer List screen

6. Ensure to select the Build List Manually option from the Transfer Option to build the List drop-down list.

7. Click the OK button. 8. Type a valid value in the PAN field. 9. Specify the destination AO code by clicking the LoV icon

corresponding to the Destination AO Code field. 10. Click the SAVE icon to save the changes. 11. Click the EXIT icon.

Concept

Transferring PANs Having Individual Status

As per AIS Instruction No. 49, the workflow for transferring PANs having individual status across RCCs involves the following steps:

1. When an AO of one RCC, also called the Transferee AO, requires transferring a PAN from an AO from another RCC, also called Source AO or Transferor AO, the Transferee AO makes an online request to the Transferor AO for transfer of PAN.

2. Next, the request for transfer of PAN is conveyed by the system to the source RCC. A message appears on the system of the Transferor AO stating the details of the PAN sought to be transferred.

3. The Transferor AO allows the request. 4. The Transferor AO, Range Incharge, or CIT confirms the request

depending on the level of jurisdiction across which the transfer of PAN is taking place.

Note: If the transfers are within the Range, then the AO confirms the

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transfers. If the transfers are within the CIT, then the Range Incharge confirms the transfers. However, if the transfers are across CIT or Area, the CIT confirms the transfers.

5. The transfer order is created automatically. 6. Finally, the AIS Admin executes the transfer order and the PAN gets

transferred to the Transferee AO in the Destination RCC.

The same workflow is also used to transfer PANs having individual status within RCC, which is provided through AIS Instruction No. 53.

Fig: Workflow for transferring PANs having individual status

Concept

Transferring PANs Having Individual Status: (Contd.)

As per AIS Instructions No. 49 and 53, the Transferor AO, Range Incharge, or CIT should allow and confirm the transfer request within 10 days. However, if the Transferor AO, Range Incharge, or CIT fails to take the necessary action within the prescribed period of 10 days, the system presumes that there is no objection from the Transferor AO, Range Incharge, or CIT and the PAN gets automatically transferred to the Transferee AO.

Note: A request for transfer of PANs having individual status can also be initiated by the Transferor AO. In such instances, the process involved is the same as that for transferring PANs having non-individual status.

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Task

Making Request for Transferring PANs

To initiate the process of transferring PANs having individual status, the Transferee AO first needs to make a request for transferring the required PANs using the DATA ENTRY FOR WITHIN RCC TRANSFER screen.

Fig: The DATA ENTRY FOR WITHIN RCC TRANSFER screen

To make a request for transferring PANs:

1. Click the Maintenance menu on the AIS main screen. 2. Select the Data Entry for Within RCC Transfers option. This displays

the DATA ENTRY FOR WITHIN RCC TRANSFER screen. 3. Type a valid PAN in the PAN field. 4. Click the EXEC icon to retrieve the records. The data in the Source

AO and Destination AO fields is displayed automatically. 5. Click the SAVE icon to save the PAN transfer request. 6. Click the EXIT icon.

Task

Allowing Transfer of PANs

After the Transferee AO makes the request, the Source or Transferor AO needs to allow the transfer request using the ALLOW WITHIN RCC TRANSFER screen. When the Source AO allows the transfer, it is confirmed by the appropriate role depending on the level of jurisdiction across which the transfer of PAN is taking place and then the transfer order is created automatically.

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Fig: The ALLOW WITHIN RCC TRANSFER screen

To allow transfers of PANs:



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2. Select the Allow Within RCC Transfers option. This displays the ALLOW WITHIN RCC TRANSFER screen.

Fig: The ALLOW WITHIN RCC TRANSFER screen

3. Select the Y checkbox under the Xfer Allow Flag section corresponding to the PAN for which you want to allow transfer. This displays a message prompting you to confirm the changes.

4. Click the Yes button to allow the PAN transfer. 5. Click the SAVE icon to save the changes. 6. Click the EXIT icon.

Concept

Closure

To complete the process of transferring PANs having either individual or non-individual status, the AIS Admin executes the transfer order and the details of the assessees are transferred to the new AO.

After the PAN details are transferred, there are a number of activities to be performed to ensure closure of the transfer procedure:

1. The record books and files of the associated assessees are physically transferred to the new AO’s office.

2. A transfer memo is created by the Transferor AO’s staff and authorized by the AO. This transfer memo includes the details about the transferred assessee, number of the files transferred, and all other information related to assessment, demand, and penalty.

3. The staff of the Transferor AO makes an entry in the blue book or PAN register about the transfer of the assessee.

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Fig: Closure procedure for transfer of PANs

CYU

Q1. Under which of the following situations the transfer of jurisdiction of specific assessees is done? (There is only one correct answer.)

a. Orders passed u/s 120 of the Income Tax Act b. Orders passed u/s 127 of the Income Tax Act c. Request for transfer of jurisdiction by the assessee

Q2. Which of the following steps is performed after the transferring officer confirms the transfer order list while transferring PANs having non-individual status? (There is only one correct answer.)

a. The Destination AO creates the transfer order. b. The Source AO allows the transfer request. c. The AIS Admin executes the transfer order.

Summary


AIS enables you to transfer PANs, having either individual or non-individual status across jurisdictions.

You can transfer the jurisdiction of an assessee either on request from the assessee or based on orders passed u/s 120 and 127.

The process of transferring PANs having non-individual status involves multiple steps:

1. The AO creates the transfer order based on the order passed by the CIT, CCIT, or DG.

2. Next, the AO or Range Incharge or CIT builds the transfer order list.

3. The AO or Range Incharge or CIT confirms the transfer order list.

4. Finally, the AIS Admin executes the transfer order.

The workflow for transferring PANs having individual status involves the following steps:

1. The Transferee AO makes an online request to the Transferor AO for transfer of PAN.

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2. The request for transfer of PAN is conveyed by the system to the Transferor AO.

3. The Transferor AO allows the request. 4. The Transferor AO, Range Incharge, or CIT confirms the

request. 5. The transfer order is created automatically. 6. Finally, the AIS Admin executes the transfer order.

For transferring PANs having individual status, the Transferor AO, Range Incharge, or CIT should allow and confirm the transfer request within 10 days, otherwise the system automatically transfers the PAN to the Transferee AO after 10 days.

Answers

Q1: b; Q2: c

Notes

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Duration

Practice Session

30 minutes

Practice

Scenario: Perform the task of transferring PANs having non-individual status from one jurisdiction to another. Complete the task in the following sequence:

1. Create transfer order 2. Build transfer order list

Perform the task of transferring PANs having individual status from one jurisdiction to another. Complete the task in the following sequence:

1. Make a request for transferring PANs 2. Allow transfer of PANs

You can refer to the steps given in the manual while performing these tasks.

Notes

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Duration

Topic 03: Restoring PANs

10 minutes

Concept

An Overview

The AIS module has a provision of restoring PANs that were deleted erroneously. In this topic, you will learn the steps to make a request for restoring PANs.


Identify the need for restoring PANs.

Identify the roles that are involved in the process of restoring PANs.

Identify the workflow involved in restoring PANs.

State the situations in which a PAN restoration request can be made.

Make a request for restoring PANs.

Concept

Need for Restoring PANs

A single assessee may sometimes have multiple PANs. In such cases, only a single PAN is retained while the others are deactivated or deleted using the process of de-duplication. This process is performed with an assumption that there will be no reversal of PANs once deleted or deactivated. However, there have been some cases where vendors had grouped the PANs incorrectly. In such instances, PANs that should ideally have been retained were deleted because of inappropriate groupings.

To rectify such instances, as per AIS Instruction No. 73, an AO can restore wrongly deleted or deactivated PANs.

Concept

Roles Involved

The process of restoring PANs involves three roles:

AO

Range Incharge

AIS Admin

Concept

The Workflow

The process of restoring PANs involves multiple steps:

In the first step, the AO makes a request to restore a deleted or deactivated PAN.

The Range Incharge then checks and confirms the validity of the request.

If any changes are needed in sub grouping, the Range Incharge sends the request back to the AO for making the required changes. The AO

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then makes the required modifications and sends back the request to the Range Incharge for confirmation.

The Range Incharge may also reject the request if the request is not valid.

If the request is confirmed, the AIS Admin executes the request and restores the deleted or deactivated PAN.

Fig: Workflow for restoring PANs

Concept

Scenarios for Restoration

An AO can request for restoration of PANs in any of the following situations:

The assessee requests the AO to restore a PAN that has been wrongly deleted or deactivated. In this case, all the clubbed PANs belong to the assessee.

The assessee requests the AO to restore a PAN that has been deleted. In this case, the retained PAN does not belong to the assessee.

Concept

Conditions for Restoration

Before making a restoration request, you should consider the following conditions:

The retained PAN should be under your jurisdiction. You cannot request for restoring a PAN that is outside your jurisdiction. You should first get the jurisdiction of the retained PAN changed to your jurisdiction and then initiate restoration.

The PAN to be restored should not be undergoing any other process, such as transfer, de-duplication, or restoration.

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The PAN should exist at the centre where the request for restoration is being made. For example, if the request is made from the Delhi RCC, the PAN should also exist in the Delhi RCC.

Fig: Conditions for restoration

Task

Restoring PANs

To initiate the process of restoring PANs, you first need to make a request for restoration. To do so, you need to specify the PAN to be restored.

To make a request for restoring PANs:

1. Click the Maintenance menu on the AIS menu bar to access the option to restore PANs.

2. Select the Restoration of PANs option. 3. Select the Restoration Request - Data Entry option. This displays the

PAN Restoration Request Maintenance screen.

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Fig: The PAN Restoration Request Maintenance screen

4. Click the ENT QRY icon. 5. Type the PAN in the PAN field. 6. Click the EXEC icon. This displays the details of the specified PAN. 7. Select the appropriate checkbox corresponding to the PAN that you

want to restore in the Current Deleted/Deactivated PAN(s) section. 8. Select the Certified that restoration and/or regrouping of PAN(s)

done after proper verification checkbox. 9. Type the remarks in the AO Remarks field. 10. Click the Selection Complete button. The PAN to be Retained dialog

box is displayed.

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Fig: The PAN to be Retained dialog box

11. Click the System Retained PAN button and then, click the OK button. The PAN Restoration Request Maintenance screen is displayed again.

12. Click the SAVE icon to save the request for restoring the PAN. 13. Click the EXIT icon.

Concept

Restoring PANs: Closure

After the AO makes the request for restoration, the Range Incharge confirms the restoration request using the Action on Restoration Requests screen.

On confirmation of the restoration request by the Range Incharge, the AIS Admin executes the request using the Action on Restoration Requests screen to finally restore the PAN.

CYU

Q1. Which of the following roles executes the requests for restoring PANs? (There is only one correct answer.)

a. AO b. Range Incharge c. AIS Admin

Q2. An AO can request for restoration of PAN in which of the following situations? (There is only one correct answer).

a. On request from an assessee to restore a PAN that has been wrongly deleted

b. On orders passed by a CIT or CCIT c. As part of the departmental procedure of validating all issued PANs

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Summary


The AIS module has a provision of restoring PANs that were deleted erroneously.

The process of restoration of PANs includes three steps:

1. The AO makes a request for restoration. 2. The Range Incharge checks and confirms the restoration request. 3. The AIS Admin executes the restoration request.

You can make a request for restoration of PANs when the assessee makes a request to restore a PAN that has been:

Wrongly deleted or deactivated.

Deleted and the retained PAN does not belong to the assessee.

Before making a restoration request, you should consider the following conditions:

The retained PAN should be under your jurisdiction.

The PAN to be restored should not be undergoing any transfer, de-duplication, or restoration process.

The PAN should exist at the centre where the request for restoration is being made.

Answers

Q1: c, Q2: a

Notes

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Duration

Practice Session

10 minutes

Practice

Scenario: Perform the task of restoring a PAN that has been deleted erroneously.

You can refer to the steps given in the manual while performing this task.

Notes

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Duration

Topic 04: De-duplicating PANs

15 minutes (Self Study)

Concept

An Overview

The AIS module enables you to delete duplicate PANs of an assessee. In this topic, you will learn the steps for deleting duplicate PANs.


Identify the need for de-duplication of PANs.

Identify the process involved in deleting PANs.

Delete PANs.

Concept

Need for De-Duplication

A PAN is unique for an assessee. However, at one point in time, the Department identified that there were some assessees who were allotted multiple PANs. To rectify this problem of multiple PANs allotment to a single assessee, the process of de-duplication was introduced.

De-duplication was a one-time activity that was performed by AOs to retain only a single PAN for an assessee and delete or deactivate the other PANs allotted to the same assessee.

However, now only the PAN deletion process is performed by AOs.

Concept

De-Duplication Process

In the process of de-duplication of PANs, the system can either deactivate or delete the PAN. Based on the number of transactions of the assessee with the Department, the system identifies whether the PAN should be deleted, deactivated, or retained. If the PAN has not been used for any transaction with the Department, it is deleted. However, if the PAN has undergone at least one transaction with the Department, it is deactivated.

Fig: De-Duplication process

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Concept

Categorizing PANs for Deletion or Deactivation

As per AIS Instruction No. 66, during the process of de-duplication, the system categorizes the duplicate PAN data into the following categories:

Category 1: When all the PANs of an assessee do not have any transaction in any ITD module except one in AIS, the latest allotted PAN is marked as ‘to be retained’ and other PANs are marked as ‘to be deleted.’

Category 2: When only one PAN out of all the PANs of an assessee has transaction in other ITD modules, the PAN with the transaction is marked as ‘to be retained’ and other PANs are marked as ‘to be deleted.’

Category 3: When two or more PANs out of all the PANs of an assessee have transactions in other ITD modules, the latest allotted PAN from the group of multiple PANs having transactions is marked as ‘to be retained’ and other PANs with transactions in other ITD modules are marked as ‘to be deactivated.’ The remaining multiple PANs that have no transaction in any other ITD modules are marked as ‘to be deleted.’

Concept

Deleting a PAN: The Workflow

The process of deletion of a PAN involves the following three steps:

1. First, the AO prepares the list of PANs to be deleted and retained. To do so, the AO uses the PAN DELETE DETAILS --PANDEL screen.

2. Next, the Range Incharge previews the data and then confirms the PAN for deletion.

3. Finally, the AIS Admin executes the PAN deletion request.

Note: An AO can also delete the PAN deletion request if it has not yet been confirmed by the Range Incharge.

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Fig: The PAN Delete Details-PANDEL screen

Task

Deleting a PAN

An AO can delete a PAN only under his or her jurisdiction.

Note: AIS also enables an AO to delete a PAN that is currently under the de-duplication process. To do so, the AO needs to D mark the PAN from the group of PANs that is under the de-duplication process. An AO can D mark a PAN till the time the deletion request is confirmed by the Range Incharge.

To delete a PAN:

1. Click the Maintenance menu on the main AIS screen.

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2. Select the Deletion/Deduplication of PANs option. 3. Select the PAN Deletion option. The PAN DELETE DETAILS --PANDEL

screen is displayed.

Fig: The PAN DELETE DETAILS --PANDEL screen

4. Type the PAN(s) that you want to delete in the PAN To Be Deleted field. 5. Type the PAN(s) that you want to retain in the PAN to be retained field. 6. Click the SAVE icon.

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7. Click the Preview button. The details of the PAN are displayed. 8. Click the Back button. 9. Click the Pre Intimation Letter button. A message is displayed notifying

that the deletion confirmation report has been generated. 10. Click the OK button to continue. 11. Click the EXIT icon.

CYU

Q1. When all the PANs of an assessee do not have any transaction in any ITD module except one in AIS, __________________. (There is only one correct answer.)

a. The latest allotted PAN is marked as ‘to be retained.’ b. The PAN that has been used in the transaction is marked as ‘to be

retained.’ c. The PAN that was allotted first is marked as 'to be retained.'

Q2. In the process of deletion of a PAN, who executes the PAN deletion request? (There is only one correct answer.)

a. AO b. Range Incharge c. AIS Admin

Summary


The process of de-duplication was introduced by the Department to rectify the problem of multiple PANs allotment to a single assessee.

De-duplication was a one-time activity that was performed by AOs to retain only a single PAN for an assessee.

As per AIS Instruction No. 66, during the process of de-duplication, the system categorizes the duplicate PANs data into three categories.

Depending on these categories, the PANs are retained, deactivated, or deleted.

The process of deletion of a PAN involves the following three steps: 1. The AO prepares the list of PANs to be deleted and

retained. To do so, the AO uses the PAN DELETE DETAILS --PANDEL screen.

2. The Range Incharge previews the data and then confirms the PAN for deletion.

3. The AIS Admin executes the PAN deletion request.

Answers

Q1: a; Q2: c

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Notes

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Updating PAN Details

Duration

Topic 05: Updating PAN Address


Concept

An Overview

After an assessee is allotted a PAN by the ITD, you can change the PAN details, if required. In this topic, you will learn the steps for updating the PAN address of an assessee.


Identify the need for updating the PAN address.

State the situations in which you need to update the PAN address.

Update the PAN address.

Concept

Need for Updating the PAN Address

The details for allotting PAN are taken from Form 49A filled by the assessee while applying for PAN. Subsequently, if there is any change in these details, such as a change in the address, the PAN details need to be updated.

Updating the PAN address of an assessee is important to ensure that all communications from the IT department to the assessee are sent to the correct address. This also helps to ensure that the correct address is reflected for all subsequent proceedings.

Concept

Situations for Updating the PAN Address

An AO can update the PAN address of an assessee in two situations:

When the assessee files an application requesting for an address change

When the AO identifies a change in the address from the return filed by the assessee

Concept

Updating the PAN Address

You can update the PAN address of an assessee on the PAN CORRECTION PARAMETERS screen. This screen displays the following fields:

Core PAN Fields

Residential Address

Office Name

Office Address

Communication Address

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Although the PAN CORRECTION PARAMETERS screen displays both the core fields and the address fields, you can change only the address and the office name of an assessee.

Task

Updating the PAN Address

To update the PAN address, you need either the PAN or the assessee’s name.

To update the PAN address:

1. Click the Maintenance menu on the AIS main screen. 2. Select the Correcting Core Data Entry Mistakes option. The PAN

CORRECTION PARAMETERS screen is displayed.

Fig: The PAN CORRECTION PARAMETERS screen

3. Type the PAN in the PAN field. 4. Click the EXEC icon. The details of the specified PAN are displayed. 5. Make the appropriate changes in the Residential Address,

Communication Address, Office Name, and Office Address sections.

6. Click the SAVE icon to save the updated address. 7. Click the EXIT icon.

CYU

Q1. Which of the following details of an assessee can you update on the PAN CORRECTION PARAMETERS screen? (There is more than one correct answer.)

a. Date of birth b. AO code c. Office name

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d. Surname e. Address

Summary


It is important to update the PAN address of an assessee in AIS. This helps to ensure that the correct address is available for all communication and processing purposes.

The PAN address of an assessee can be updated either at the assessee’s request or based on the address specified in the return filed by the assessee.

The PAN address is updated from the PAN CORRECTION PARAMETERS screen. This screen displays both the core fields and the address fields. However, you can change only the address and the office name of an assessee.

You need the PAN or the assessee name for updating the PAN address.

Answers

Q1: c, e

Notes

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Duration

Topic 06: Adding Assessee Events


Concept

An Overview

The AIS module enables you to record and update specific events associated with an assessee. In this topic, you will learn the steps for adding assessee events.


Identify the need for adding assessee events.

List the various types of assessee events.

Recognize the various types of screens for adding assessee events.

Add assessee events.

Concept

Need for Adding Assessee Events

After an assessee is allotted a PAN by the Department, there could be certain events, such as the death of an assessee or dissolution of a firm that may lead to changes in PAN details. It is important to add such events to the AIS database to ensure that the updated PAN details are maintained for all subsequent transactions between the assessee and the Department. Consider an example of a split event, in which Company A has the PAN AAAHO3333K. Now, Company A has been split into two companies, Company B and Company C. In such an event, the newly formed entities, Company B and Company C, will be allotted new PANs. Therefore, it is important that you update this split event to ensure that all future correspondences from the Department are made using the newly allotted PANs.

Concept

Assessee Event Codes

To add events associated with an assessee, AIS provides the ASSESSEE EVENT MAINTENANCE screen. As mentioned earlier, there are various types of events that may be associated with an assessee, such as their death, amalgamation, split, and so on. Therefore, the ASSESSEE EVENT MAINTENANCE screen provides the following specific event codes for all possible assessee events that you can record in AIS:

Death

Amalgamation

Acquisition

Merger

Dissolution

Liquidation

Under Liquidation

Split

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Partition

Fake PAN

Concept

Specifying Assessee Event Details

After selecting the event type, the ASSESSEE EVENT MAINTENANCE screen changes based on the event type selected. There are typically three variations of this screen:

The first type of screen is displayed when you specify events that are associated with a single assessee, such as death of an assessee or dissolution of a firm. In this type of screen, you can specify the PAN and the corresponding remarks about the event.

Fig: The ASSESSEE EVENT MAINTENANCE screen – first type

The second type of screen is displayed when you specify events in which multiple entities are involved, such as a merger. In the event of merger of a number of companies into one company, the screen provides the option to specify the PANs of the original companies and a single PAN of the new company.

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Fig: The ASSESSEE EVENT MAINTENANCE screen – second type

The third type of screen is displayed when you specify events such as split of a company. In such events, the screen provides options to specify one source PAN of the original company and multiple PANs of the companies that are formed after splitting the original company.

Fig: The ASSESSEE EVENT MAINTENANCE screen – third type

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Task

Adding Assessee Events

To add assessee events using the ASSESSEE EVENT MAINTENANCE screen, you need the following information:

Event code

Event date

PAN

To add assessee events:

1. Click the Maintenance menu on the AIS main screen. 2. Select the Assessee Event Details option. This displays the

ASSESSEE EVENT MAINTENANCE screen.

Fig: The ASSESSEE EVENT MAINTENANCE screen

3. Select the event code from the Event Code drop-down list. For the DEATH event, the code is displayed by default.

4. Type the PAN of the assessee in the PAN field. 5. Type the event date in the Event Date field. 6. Type the remarks for the event, if any, in the Remarks field. 7. Click the SAVE icon. The event for the assessee is added to the

database. 8. Click the EXIT icon.

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CYU

Q1. For which of the following types of event code do you need to specify a single source PAN and multiple linked PANs? (There is only one correct answer.)

a. Death b. Split c. Dissolution d. Merger

Q2. What happens after you select the event code? (There is only one correct answer.)

a. All the records for the similar event code are displayed. b. The screen relevant for that event is displayed. c. The system prompts for PAN of the assessee.

Summary

Key Points To Remember

Assessee event details should be added to the AIS database to ensure that the correct PAN details are maintained for all subsequent transactions between the assessee and the Department.

The various types of events that may be associated with an assessee are:

o Death o Amalgamation o Acquisition o Merger o Dissolution o Liquidation o Under Liquidation o Split o Partition o Fake PAN

The ASSESSEE EVENT MAINTENANCE screen is used to specify the type of event that you want to record or update for an assessee. This screen changes based on the type of event selected.

You need the following information for adding assessee events: o Event code o Event date o Associated PANs

Answers

Q1: b; Q2: b

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Notes

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Restoring Data and Generating Reports in AIS

Duration

Topic 07: Restoring Original Data


Concept

An Overview

AIS enables you to restore PAN details that have been wrongly updated. In this topic, you will learn the steps to restore original data.


Identify the need for restoring original data.

List the details of assessees that you can restore.

Restore the original data of an assessee.

Concept

Need For Restoring Original Data

At times, there may be instances when details of assessees are wrongly updated in AIS. This leads to data discrepancy. In such situations, it is important to restore the wrongly updated data based on the original data maintained in AIS.

The process of restoring original data of assessees is a one-time activity. As per AIS Instruction No. 57, AOs can undo any wrongly done changes made during the period June 1st 2003 and January 15th 2005 for assessees under their jurisdiction. While restoring the original data, AOs can view all the changes in the data of a PAN in the reverse chronological order in which the changes were made.

An AO can restore original data for a PAN only on request or intimation about an error from the PAN holder. An AO can restore original data for only those PANs for which changes have not been reverted yet. In addition, an AO can only restore original data for PANs that are under the AO’s jurisdiction.

Concept

Guidelines

It is possible that during the period between June 1st 2003 and January 15th 2005, genuine changes in PAN data may have been made by officials at RCCs based on the requests made by the PAN holder. Therefore, while restoring data, AOs should ensure that they restore only the data that has been wrongly changed. It is recommended that the AOs should:

Examine the changes in PAN data received through the service provider to identify any instances of malafide changes.

Examine the changes in PAN data received through the service providers to identify any instances of malafide changes.

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Concept

Guidelines (Contd.)

Before restoring original data, it is recommended that you scrutinize all the changes made through other user IDs.

To do so, perform the following steps:

1. Click the Queries menu. 2. Select the Assessee Audit Log option. This displays the ASSESSEE

AUDIT LOG screen. The Audit Log Details section of this screen displays the list of all the changes.

3. Double-click a record in the Audit Log Details section to view the details.

Concept

Identifying Data that can be Restored

You can use the Restore Assessee Details Present While Updations screen to restore the original data of an assessee. Although this screen displays all the details of the assessee, you can only restore the data for the following details:

Assessee name

Father’s name

Sex

Date of birth

Residential address

Office address

Fig: The Restore Assessee Details Present While Updation screen

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Task

Restoring Original Data

To restore the original data of an assessee, you need to type the PAN of the assessee in the Restore Assessee Details Present While Updations screen. On specifying the PAN, the existing assessee details as well as the updated details are displayed.

Note: During restoration, the changes are restored in chronological order, that is, the latest changes are reverted first. Once any data is restored, a log is created. This log helps track all changes that have been reverted for a particular assessee.

To restore original data:

1. Click the Maintenance menu on the AIS main screen. 2. Select the Undo Wrongly Done Changes option. This displays the

Restore Assessee Details Present While Updations screen.

Fig: The Restore Assessee Details Present While Updation screen

3. Click the LoV icon for the PAN field and select an appropriate PAN. 4. Click the EXEC icon. 5. Select the data that is to be restored under the Previous values section.

6. Click the SAVE icon. The message “Do you want to restore the changes?” is displayed.

7. Click the Yes button. The selected data is restored to the original data. 8. Click the EXIT icon.

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CYU

Q1. Which of the following details of an assessee can you restore? (There is only one correct answer.)

a. PAN b. Sequence number c. Date of birth

Q2. An AO can restore data for which of the following categories of PANs? (There is more than one correct answer.)

a. PANs under the jurisdiction of the AO b. PANs under the jurisdiction of all the AOs in a particular Range c. PANs against which at least a single return has been filed d. PANs for which changes have not been reverted

Summary


You can restore details of PANs that have been wrongly updated from the original data that AIS maintains.

Restoration of original data is a one-time activity.

As per AIS Instruction No. 57, AOs can undo any wrongly done changes made during the period June 1st 2003 and January 15th 2005 for the assessees under their jurisdiction.

While restoring data, AOs should ensure that they restore only the data that has been wrongly changed.

An AO can restore data of specific PANs:

PANs that are under the AO’s jurisdiction.

PANs for which data has not been reverted.

An AO can restore original data using the Restore Assessee Details Present While Updations screen.

An AO can restore specific assessee details, such as:

Name

Father’s name

Sex

Date of birth

Residential address

Office address

An AO cannot change the PAN and the sequence number of the assessee.

Restored data is saved in chronological order.

Answers

Q1: c; Q2: a, d

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Notes

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Duration

Topic 08: Generating Reports in AIS


Concept

An Overview

AIS allows you to generate various types of reports. In this topic, you will learn the steps for generating some of these reports.


Generate the AO Wise PAN Directory report.

Generate the Transfers Within RCC Pendency report.

Concept

AO Wise PAN Directory Report

The AO Wise PAN Directory report displays the list of PANs that are under the jurisdiction of a particular AO. This report displays various details such as:

AO code

AO description

Assessee's details such as: o Name o PAN o Communication address o Father’s name o Status o Date of birth of the assessee or date of incorporation of the company

You can generate the AO Wise PAN Directory report through the PAN DIRECTORY REPORT screen.

Task

Generating AO Wise PAN Directory Report

To generate the AO Wise PAN Directory report through the PAN DIRECTORY REPORT screen, the following information should be available:

Report type

AO code

AO description

To generate the AO Wise PAN Directory report:

1. Click the Reports menu. The option for generating reports is displayed.

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Fig: The Reports menu on the AIS main screen

2. Select the PAN Directory option. The PAN DIRECTORY REPORT screen is displayed.

Fig: The PAN DIRECTORY REPORT screen

3. Click the Report Type drop-down list and select the appropriate option from the available list.

4. Type the information in the AO Code field. Based on the specified AO code, the details in the AO Description field are populated automatically.

5. Click the GEN icon. A message is displayed notifying the report ID and file name of the generated report.

6. Click the OK button to continue. 7. Click the EXIT icon. 8. Click the Action menu. 9. Select the Main Menu option. The AIS main menu is displayed. 10. Click the Reports menu.

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11. Select the Report Download option. The Report Download screen is displayed.

Fig: The Report Download screen

12. Select the checkbox corresponding to the report you want to download.

13. Click the Download Report button. 14. Click the EXIT icon. 15. Double-click the My Computer icon on the desktop. The My

Computer window is displayed. 16. Double-click the Local Disk (C:) icon. The data in the C drive is

displayed. 17. Double-click the ITDSPOOL folder. The downloaded files are

displayed. 18. Double-click the recently downloaded report that you want to

view. The AO Wise Pan Directory report is displayed.

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Fig: The AO Wise PAN Directory report

19. Click the Close button to close the report.

Concept

Transfers Within RCC Pendency Report

The Transfers Within RCC Pendency report displays the details of transfers that are pending within a particular RCC. This report displays the following information related to the pending transfers:

PAN of the assessee

Name of the assessee

Status of whether or not the transfer has been allowed

Status of whether or not the transfer has been confirmed

Proposed date of transfer

Indication of whether the transfer order has lapsed or has been executed

Transferor AO code

Transferor CIT code

Transferee AO code

Date on which the transferee requested for the transfer

In addition, the report also displays the report ID, the date on which the report is generated, and the user ID of the AO who generated the report.

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Fig: The Transfers with RCC Pendency report

Concept

Transfers Within RCC Pendency Report (Contd.)

You can generate the Transfers Within RCC Pendency report through the QUERY WITHIN RCC TRANSFERS screen. On this screen, you can specify various parameters based on your requirements to generate a report with specific details. These parameters are:

Entered on or after: This enables you to specify the period for which you want to generate the report.

Pendency: This enables you to specify the status of the pending transfers that you want to view. It displays the following options:

TRANSFERRED

PENDING TRANSFER

POSTED IN TRANSFER LIST

PENDING FOR POSTING IN LIST

NOT ALLOWED

ALL ENTERED PANS

Transfer: This enables you to specify whether you want to generate the report for transfers from a particular RCC or to a particular RCC.

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Fig: The QUERY WITHIN RCC TRANSFERS screen

Task

Transfers Within RCC Pendency Report

To generate the Transfers Within RCC Pendency report through the QUERY WITHIN RCC TRANSFERS screen, the following information should be available:

AO code

Period for which you want to generate the report

Pending status for which you want to generate the report

To generate the Transfers Within RCC Pendency report:

1. Click the Queries menu on the main AIS main screen.

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Fig: The Queries menu on the AIS main screen

2. Select the Assessees Transferred Within RCC option. The QUERY WITHIN RCC TRANSFERS screen is displayed.

Fig: The QUERY WITHIN RCC TRANSFERS screen

3. Type the date in the Entered on or after field or accept the default current date.

4. Click the Pendency drop-down list and select the appropriate option from the available list.

5. Click the GO FOR QUERY button. All the pending transfer records

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within the RCC are displayed. 6. Click the Print Report button. A message is displayed indicating that the

report has been generated. The message also shows the path from where you can download the report to your local machine.

Fig: The message box indicating report generation

7. Click the OK button to continue. 8. Click the EXIT icon. 9. Click the Action menu. 10. Select the Main Menu option. The AIS main menu is displayed. 11. Click the Reports menu. 12. Select the Report Download option. The Report Download screen is

displayed. 13. Select the checkbox corresponding to the report that you want to

download. 14. Click the Download Report button. 15. Click the EXIT icon. 16. Double-click the My Computer icon on the desktop. The My Computer

window is displayed. 17. Double-click the Local Disk (C:) icon. The data in the C drive is

displayed. 18. Double-click the ITDSPOOL folder. The downloaded files are displayed. 19. Double-click the recently downloaded report that you want to view. The

Transfers Within RCC Pendency report is displayed.

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Fig: The Transfers Within RCC Pendency report

20. Click the Close button to close the report.

CYU

Q1. Which of the following information about the assessee is displayed on the AO Wise PAN Directory report? (There is only one correct answer.)

a. Mother’s maiden name b. Communication address c. Office name

Q2. Which of the following information is required for generating the Transfers Within RCC Pendency report? (There is only one correct answer.)

a. Report type b. AO Description c. AO Code

Summary

Key Points To Remember

AIS allows you to generate various types of reports.

The AO Wise PAN Directory report displays the list of PANs that are under the jurisdiction of a particular AO.

The Transfers Within RCC Pendency report displays the details of transfers that are pending within a particular RCC.

Answers

Q1: b; Q2: c

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Introduction to AST

Duration

Topic 09: Introduction to AST

15 minutes

Concept

An Overview

AST allows you to perform the task of processing returns and other proceedings. This topic will provide you an overview of AST, the functions performed by AST, and the user interface of AST.


Recognize the features and functions of AST.

Identify the linkages of AST with other modules.

Describe the AST workflow.

Identify the steps involved in accessing AST.

Recognize the various menus and menu options in AST.

Concept

The AST Module

AST is the core module of the ITD application. It is primarily used to process returns and rectify errors. It supports tax calculations, interest calculations, selection of cases for scrutiny, validation of due dates, and so on.

It was designed and developed for:

Assisting in the processing of returns and subsequent proceedings for a case.

Automatic management and processing of the assessment information.

Consolidation and easy retrieval of information.

Easy monitoring and tracking.

AST also monitors progress and results of a case at various stages, such as:

Assessment

Reassessment

Appeal

Revision

Rectification

Penalty waiver

Settlement commission

Penalty proceedings

Prosecution

Audit objections

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Concept

Features of AST

AST has the following features:

It is an online application. Data is stored on the production and backup servers. An AST user can access this data over the network.

It is a secure system. Security is inbuilt in the system and only valid users with proper role are allowed to work in this module. Access to AST is enabled after proper authentication. A user needs to access the system with a username and a password. Any modifications to the database can be tracked back to the user through an audit log.

It is a menu-driven and Windows-based software. AST uses Graphical User Interface (GUI) elements such as toolbars, push buttons, checkboxes, list items, radio groups, and combo boxes. These features simplify the task of performing screen-based functions and navigating across screens. The screens are self-explanatory and supported by messages.

It is mainly a parameter-driven system. A parameter is the value entered in a field. AST queries the database and displays all records according to the values entered. These parameters support the calculation of tax and interest under various sections, selection of cases for scrutiny, time-barring checks, deductions-limit validations, and due-date checks.

It assists in selection of cases for scrutiny. AST allows you to specify the parameters for selection of cases for scrutiny based on the guidelines from the Department. The specified parameters can then be used to generate the list of cases that should be scrutinized. After selection, AST allows you to enter the details of the appeals made, the proceedings carried out, and the notices issued.

It allows the execution of multiple types of queries. AST provides multiple options to query the database. You can enter a PAN to view the details of the returns, orders, and proceedings related to that PAN. Similarly, you can query on an assessment year or a form type to view all the returns submitted for that year or form type.

It provides various options for generating reports. AST provides scheduled and online reports in the 3-Tier version. You can schedule a report for a later date. AST supports various type of reports such as the mismatch report, list of cases selected for scrutiny, challan, demand notice, refund voucher, assessment-related portion, notices u/s 142(1), 148, 143(2), and list of non-filers.

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Concept

Functions of AST

The functions that you can perform in AST are controlled by the role assigned to you.

An AO can perform the following functions in AST:

Receipt of returns

Processing of returns u/s 143(1)

Issue of refund/demand through Electronic Clearing

Service (ECS)/paper refund

Rectification

Scrutiny and regular assessment

Maintenance of appeals and its effects

Maintenance of penalties and audit objections

Concept

Linkages With Other Modules

AST gathers data by interacting with the other modules. This ensures consistency of data within the ITD application.

Fig: Linkages of AST with the other modules

AST is linked with the following modules in the ITD application:

AIS provides the PAN information.

OLTAS provides information related to the online payment of direct taxes.

TDS provides AS26 information. AST is designed to automatically extract details of the prepaid taxes from OLTAS and TDS.

CIB provides Annual Income Return information.

IRLA reflects the results of processing done in AST.

Global Databases are used for authentication.

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Concept

The AST Workflow

The primary workflow in AST is for the processing of returns. This workflow involves the primary functions in the module.

Fig: The workflow for processing of returns

To process returns:

1. Log in to the ITD application and then access the AST module. 2. Create bundles to receive returns. 3. Add the entries in the RRR. 4. Enter the return details in AST. 5. Initiate processing of returns. 6. Process returns u/s 143(1)., and 7. Print the refund/demand vouchers, intimations, and challans

based on the results of processing.

The task of scrutiny, rectification, and regular assessment may be performed based on the type of case and the return filed.

Task

Accessing AST

AST works under a well-defined security domain that allows only authorized users to view, modify, or update data in various screens. To access AST, you first need to log in to the ITD application.

To access AST:

1. Double-click the Internet Explorer icon. 2. Type https://itdapp.incometax.net/ in the address bar and

press the Enter key to access the ITD application. This displays the Authentication Proxy Login Page.

https://itdapp.incometax.net/

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Fig: The Authentication Proxy Login Page

3. Type the username and password for RSA authentication. 4. Click the OK button to log in. This displays the Income Tax

Application user logon screen.

Fig: Income Tax Application User logon screen

5. Type the user name and password for accessing the ITD Application.

6. Click the OK button to log in. This displays the INCOME TAX APPLICATIONS SYSTEMS MENU screen.

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7. Click the AST menu to access AST. This displays the AST home page.

Concept

The AST User Interface

The AST user interface is divided into four parts.

Fig: The AST user interface

Menu bar: It has 11 menus that allow you to perform various tasks. For example, if you click the Processing menu, it displays the options available in this menu. You can select the Create Bundles option to create a bundle.

Toolbar: It has a set of icons that help you to perform the key tasks on any screen.

Main page: This is the area where the forms/fields are displayed. o Message bar: It has two parts: o Message line: It displays:

Oracle Forms’ standard messages: These messages are displayed on the message line in response to an erroneous or unconventional action. For example, if you try to display a record when all the records related to the current query have been displayed, Oracle Forms display the message ‘FRM-40350: Query caused no records to be retrieved’.

AST-specific hints or information messages: These are messages carrying information and tips on using AST. The messages displayed may be error-related or simply a warning message. If the message displayed is an error message, it calls for your corrective action. Such messages might also appear as alerts, which are small pop-up windows within the

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main page.

Status line: Is the last line on the screen that contains indicators. For example, the status 'Enter Query' indicates that a query can be entered. For lists, it displays the number of items in the list.

Concept

Toolbar

The icons on the toolbar in AST are common to all modules. Each icon has a picture and an abbreviated label. Clicking the icon allows you to perform the relevant step. For example, clicking the SAVE icon allows you to save the record.

An icon may be enabled or disabled depending on the screen. All highlighted icons are enabled and hence active. All dimmed icons are disabled and hence inactive.

There are 21 icons on the toolbar. The following icons are most frequently used:

ENT QRY: Allows you to enter a query and specify the query conditions.

EXEC: Executes the query with the conditions specified and displays the results.

SAVE: Saves the changes to the database. If an error message is displayed, you need to correct the errors and then click the SAVE icon again.

EXIT: Closes the current screen and returns to the parent screen.

ADD: Creates a new record with all fields either having null or default values, if applicable.

DEL: Deletes the current record from the screen. The record is deleted from the database only if the SAVE icon is clicked.

Concept

Function and Shortcut Keys

There are various function and shortcut keys available in AST. Some of these keys are shortcuts for functions available through menus or buttons.

F1: Help

F7: Enter a query

F8: Execute a query

F10: Accept or save

F9: List of values

Ctrl+P: Print record

Ctrl+Q: Exit

Tab or Ctrl+Tab: Next item or field

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Task

Exiting from AST

To exit from AST:

1. Click the EXIT icon on the toolbar to reach the AST Home page. 2. Click the Action menu. 3. Select the Exit Application option. This will close the AST Home

page and display the INCOME TAX APPLICATION SYSTEMS MENU screen.


CYU

Q1. Which of the following functions can be performed in AST by an authorized user? (There is more than one correct answer.)

a. Identification of stop-filers and non-filers b. Processing u/s 143(1) c. Scrutiny and regular assessment d. Restoration of PAN e. Maintenance of penalties and audit objections

Q2. What is the next step after initiating the processing of returns in the AST workflow? (There is only one correct answer.)

a. Create RRR b. Create bundles c. Process returns u/s 143(1)

Summary


AST is the core module of the ITD application. The objective of AST is to assist an AO in processing returns and conducting assessments and related proceedings.

AST helps to monitor the progress and result of a case at various stages, such as assessment, reassessment, appeal, and rectification.

AST is linked to the other modules in the ITD application: o It takes inputs from AIS, OLTAS, TDS, IRLA, and CIB. o It provides inputs to IRLA in the form of results of processing. o It uses the global databases for authentication.

AST workflow includes the following steps: 1. Create bundles to receive returns. 2. Add entries in the RRR. 3. Enter return details in AST. 4. Initiate processing of returns. 5. Process returns u/s 143(1). 6. Print refund/demand vouchers, intimations, and challans based on the

results of processing.

The AST user interface has four parts: o Menu bar has 11 menus that allow you to perform various tasks.

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o Toolbar has a set of icons that help you to perform key tasks on any screen.

o Main page is the area where the forms/fields will be displayed for you.

o Message bar has two parts, message line and status line.

Answers

Q1: b, c, e; Q2: c

Notes

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Duration

Topic 10: Creating Bundles

10 minutes

Concept

An Overview

Creating bundles is the first step in processing returns in AST. In this topic, you will learn to create and delete bundles in AST.


Create a bundle.

Delete a bundle.

Concept

Bundles

A bundle refers to a collection of returns received during a particular financial year. You need to create a bundle to enter returns.

Bundles typically have the following features:

A bundle in AST cannot be seen physically. It is imaginary and recognized by all the modules in the ITD application.

One bundle can include any number of returns. However, typically a bundle has 50 returns.

All bundles are assigned a unique number for easy identification and tracking in AST.

Once a return is allocated to a bundle, it cannot be changed.

Task

Creating a Bundle

Processing of returns begins with the creation of bundles for receiving returns.

Bundle numbers are populated automatically based on the number of the last bundle created. For example, if the number of the last bundle created for 2007-08 is 10, the next bundle is automatically assigned the number 11.

Bundle numbers follow a sequence for a receipt year. The number of the last bundle created for 2007-08 may be 10 and the number for the last bundle created for 2008-09 may be 2.

To create a bundle:

1. Click the AST menu to access the AST module. 2. Click the Processing menu on the main AST window.

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Fig: The Processing menu in AST

3. Select the Create Bundles option. The Bundle Maintenance screen is displayed.

Fig: The Bundle Maintenance screen

Note: The Bundle Maintenance screen is used to create bundles, delete bundles, and upload all returns in the ITD application.

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4. Type the receipt year in the Receipt Year field in the YYYY format.

Note: Do not make bundles of returns that were filed in different years.

5. Type the last bundle number that was created in the current year in the Last Bundle No. field.

6. Type the range of the bundles in the From and To fields of the Bundle Number Range field.

Note: To create more than one bundle, type the start and the end numbers of the bundles to be created. If one bundle is to be created, then type the same bundle number in both the fields. For ex, if you want to create one bundle and the last bundle number is 9, then your bundle range will be 10 to 10. If you want to create two bundles, then the bundle range will be 10 to 11.

7. Click the Create button. A warning message is displayed indicating that one bundle will be created.

Fig: Warning message during creation of bundles

8. Click the OK button to proceed with the creation. A note is displayed indicating that one bundle has been created.

Fig: Information message during creation of bundles

9. Click the OK button to confirm the creation. 10. Click the EXIT icon to close the screen.

Task

Deleting a Bundle

You can delete any empty bundle in AST. If a bundle has any returns, it cannot be deleted.

To delete a bundle:

1. Click the Processing menu on the main AST window. 2. Select the Create Bundles option. The Bundle Maintenance

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screen is displayed. 3. Type the receipt year in the Receipt Year field in the YYYY

format. 4. Type the range of the bundles in the From and To fields of the

Bundle Number Range field.

Note: To delete more than one bundle, type the start and the end numbers of the bundles to be deleted. If one bundle is to be deleted, then type the same bundle number in both the fields.

5. Click the Delete button. A warning message is displayed indicating that one bundle will be deleted.

6. Click the OK button to proceed with the deletion. A note is displayed indicating that one bundle has been deleted.

7. Click the EXIT icon to close the screen.

CYU

Q1. Which screen is used to create bundles for receiving returns? (There is only one correct answer.)

a. Bundle Maintenance screen b. Return Acknowledgment Sheet c. Initiate Processing screen

Q2. Which of the following fields need to be filled to delete a bundle on the Bundle Maintenance screen? (There is more than one correct answer.)

a. Receipt Year b. PAN c. Bundle Number Range d. Date of filing e. Assessment Year

Summary


Creating bundles is the first step in processing returns in AST. A bundle refers to a collection of returns received during a particular financial year.

All bundles are assigned a number for easy identification and manipulation in AST. Once a bundle number is allocated, it remains the same throughout.

The Bundle Maintenance screen is used to create bundles, delete bundles, and upload all returns in the ITD application.

Only empty bundles can be deleted. If the details of returns in a bundle have been entered into the system then such a bundle cannot be deleted.

Answers

Q1: a; Q2: a, c

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Notes

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Duration

Topic 11: RRR

15 minutes

Concept

An Overview

Adding records in the Return Receipt Register (RRR) is the second step in processing. In this topic, you will learn about the RRR and adding and maintaining entries in the RRR.


Add records in the RRR.

Maintain records in the RRR.

Concept

RRR

The RRR in AST is a replica of the manual RRR or the ‘Dak Register’ that provides details of all the returns received on a particular date.

In the manual system, the IT official used to receive returns from the assessee and enter the relevant details in the register. In AST, the same process is being replicated by adding records into the RRR maintained within the system.

Adding records into the RRR is the second step for processing returns in AST. This step is performed for acknowledging the receipt of the return from the assessee.

It is important to add records in the RRR as soon as the returns are received from the assessee. This ensures that the department has information on the number of returns received at all times, whether they are processed or not.

The process of adding RRR records in AST can be done only if all the information in the manual RRR is completely filled at the time of receiving the returns.

Task

Navigating to RRR

To add a record in the RRR in AST, you first need to navigate to the Return Receipt Register screen.

To navigate to the Return Receipt Register screen:

1. Click the AST menu to access AST. This displays the AST Home page.

2. Click the Processing menu. 3. Select the Return Receipt Register option.

This displays the Return Receipt Register screen. This screen also allows you to inquire, update, or delete a record in the RRR.

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Fig: The Return Receipt Register screen

Note: The bundle number for the return should be available before adding the record in the RRR.

Concept

Field References

The Return Receipt Register screen displays a set of fields that need to be entered for each RRR record.

The AO Code is displayed automatically based on the User ID used to log in.

The mandatory fields are:

Receipt Year

Date of filing

Ack. No (Acknowledgement number)

Ast Year (Assessment year)

Return Inc. (Income mentioned on the return)

Status

Bundle No.

Form Type

Due Date

The optional fields are:

PAN

Refund Amt (Refund amount)

Remark

Val. Fringe Benefits (Value fringe benefits)

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Task

Adding RRR Records

To add a record in RRR, on the Return Receipt Register screen:

1. Type the receipt year in the Receipt Year field. 2. Type the date of filing in the Date of filing field. 3. Type the return information in the following fields:

Ack. No

PAN

Ast Year

Form Type

Referenced With

Return Inc.

Refund Amt

Status

Description

Due Date 4. Click the SAVE icon to create the return entry.

Task

Inquiring RRR Records

You can inquire records in the RRR by executing a query on a single or a combination of selection criteria.

To inquire for records using the receipt year and PAN:

1. Click the ENT QRY icon. 2. Type the receipt year in the Receipt Year field. 3. Type the PAN in the PAN field. 4. Click EXEC icon to view the record.

The screen will display the records of the assessee with the specified receipt year and PAN.

Task

Updating RRR Records

You can modify the return details of a specific record in the RRR after retrieving it from the system.

To modify the refund amount in a record:

1. Type the new value of the refund amount in the Refund Amt field. 2. Click the SAVE icon to update the changes.

Note: You can change the values in the fields by overwriting the existing values or typing a new value. Some fields do not allow any modification. To update such fields, you need to delete the existing record and create a new one.

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Task

Deleting RRR Records

You can also delete a record in the RRR after retrieving it from the system.

To delete a record, on the Return Receipt Register screen:

1. Select the record that needs to be deleted by clicking on the Ack. No field.

2. Click the DEL icon to delete the record in the RRR. This clears the record from the screen.

3. Click the SAVE icon to confirm the deletion of the record.

CYU

Q1. Which of the following tasks can you perform on the Return Receipt Register screen of the AST module? (There is more than one correct answer.)

a. Retrieve records with a specific PAN b. Complete assessment of a RRR record c. Modify the return details d. Generate notices e. Add RRR records

Q2. Which of the following fields are mandatory to be filled while adding a RRR record? (There is more than one correct answer.)

a. Form Type b. PAN c. Refund Amount d. Receipt Year e. Bundle Number

Summary


The RRR in AST is a replica of the manual RRR or Dak Register. It includes details of all the returns that are received on a particular date.

Adding a record in the RRR is the second step for processing returns in AST. It is done after the creation of bundles.

Records can be added, inquired, updated, and deleted in the RRR.

The Returns Receipt Register screen allows adding, inquiring, updating, and deleting records.

To modify or delete a record, you first need to retrieve it by running a query.

Answers

Q1: a, c, e; Q2: a, d, e

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Duration

Practice Session

30 minutes

Practice

Scenario: Access the ITD application and perform the following tasks: 1. Create two bundles. 2. Delete the bundles created. 3. Access the Return Receipt Register screen.

Inputs: Ensure that you have the AO code and the PAN allocated to you by the trainer.

Steps to access the ITD application:

1. Open the Internet browser. 2. Type http://10.160.37.18:7778/forms/frmservlet?config=TRCC in the

address bar and press the Enter key to access the ITD application.

Refer to the manual to for the steps while performing these tasks.

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http://10.160.37.18:7778/forms/frmservlet?config=TRCC

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Duration

Topic 12: Adding Returns

30 minutes

Concept

An Overview

After creating bundles and adding RRR entries, you need to add manually-filed returns in the system. In this topic, you will learn the steps for adding, inquiring, and updating returns.


Add returns.

Inquire and update return details.

Concept

What It Is?

Adding returns is a step to create an electronic copy of the hard copy return. This step ensures that all the information provided by the assessee is available in AST for processing the return u/s 143 (1).

You need to perform this step for returns that are manually filed. The details of the e-filed returns are recorded in the system when the assessee files the return online.

While adding returns in AST, you need to enter the same details that are available in the hard copy return. You should not make any changes in the details even if there are apparent mistakes in the return. The mistakes should be corrected later by rectification of the return.

Returns can be added in two ways:

Querying the RRR entry to add the remaining details: The prerequisite for this is that the RRR entry should have been done. The query extracts the returns details available in the RRR. You can then add the remaining details.

Adding the return details directly: This is the most frequently-used way since RRR entry is optional.

Task

Adding Returns

The steps for adding returns are same for all ITR types. The only difference between the ITR forms is in the number of fields, sections, or schedules.

To add return details:

1. Click the Processing menu on the main AST window.

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Fig: The Processing menu

2. Select the Returns option. The Return Acknowledgement Sheet screen is displayed.

Fig: The Return Acknowledgement Sheet screen

3. Type the receipt year in the Rcpt Yr field and press the Tab key. 4. Type the bundle number to which you want to allocate the return in the

Bndl No field.

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Note: The format for entering bundle numbers is 0 and then the bundle number. For example, type 0 in the first field, press the Tab key, and then type 15 in the second field.

5. Type the acknowledgement number in the Ack No field and assessment year in the Ast Yr field. Press the Tab key after each entry.

6. Type the value in the PAN field and press the Tab key. The name of the assessee is populated automatically.

Note: To change the assessee’s address, select the Change in Address check box. To view the assessee details, click the Assessee Details button at the top.

7. Click the drop-down menu for the Return field and select the appropriate return type. The form displayed on the screen changes based on the type of return selected.

Fig: The change in the Return Acknowledgement Sheet screen based on return type

8. Click the drop-down menu for the (O)riginal/(R)evised field and select the option to indicate if the return is original or revised. For revised returns, also enter the receipt number and the date of original filing in the Rcpt No. and Dt. of orig filing fields.

9. Click the LoV icon for the Residence in India field and select the residence status of the assessee.

10. Click the LoV icon for the Status field and select the assessee’s PAN

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status. 11. Type the date on which the return has been filed in the Date filed field.

The due date is populated automatically.

Note: If the return is belated, a message is displayed stating that. Click the OK button.

12. Type the assessee’s address, phone number, email ID, date of birth and sex in the PartA-Gen section.

13. Scroll down the page and type the income details.

Fig: The fields for entering income details on the Return Acknowledgement Sheet screen

14. To enter the details for a schedule, click the corresponding button. A screen with the fields for the schedule is displayed.

Fig: Screen for entering details for a schedule

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15. Enter the details of the schedule by typing and selecting the values from the LOV, as applicable.

16. Click the Close button to return to the Return Acknowledgement Sheet screen.

17. Type the total value for that schedule. 18. Scroll down the page and type the details for all sections and schedules

as filed by the assessee in the return. 19. Click the Bank Details button at the bottom of the page and type the

bank account details for the assessee. 20. Click the More button at the top-left corner of the screen to complete

the remaining pages of the return. 21. Enter the tax payment details in the following manner, as applicable:

TDS/TCS: i. Click the TDS Payments button at the top. This displays the

TDS Entries screen.

Fig: The TDS Entries screen

ii. Enter the payment details.

Advance or Self-assessment Tax: i. Click the Prepaid Taxes button. This displays the Regular Tax

Payments/Refunds screen, which has three tables.

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Fig: The Regular Tax Payments/Refunds screen

o The first table has the tax entries that have already been posted in IRLA. If there is any challan that does not belong to the assessee or assessment year, select the Contra Entry check box and click the SAVE icon to cancel it.

o The second table has entries that exist in OLTAS but are not posted in IRLA. You need to claim such entries from OLTAS while processing the return u/s 143(1).

o The third table is where you will add the details of the challans that have been claimed by the assessee but are not present in the first two tables.

22. After entering all the data, review the return details for accuracy and select the Reviewed checkbox.

Note: If you don’t select the Reviewed check box, you will not be able to initiate the bundle and process the returns.

23. Click the SAVE icon. Depending on the return details entered, a number of messages may be displayed:

Message for belated returns.

Message for filling the residence and PAN status of the assessee.

Message for filling the date of filing and due date.

Message with the tax details per the assessee and the system. You can review the tax details filled by the assessee from this screen, by

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double-clicking the amount in the As per User field.

Fig: The Message List screen

Message stating that the return is saved.

24. Click the OK button to close the message box(es). The return is successfully entered into AST.

25. Click the EXIT icon to close the screen.

Concept

Guidelines for Adding Returns

To navigate between the various schedules, use the More and Back buttons on top.

Use the Tab key to navigate between fields on a screen or schedule. Pressing the Tab key on the last field of a schedule will navigate to the first field of the next schedule.

Press the Tab key after typing the value for any field.

You cannot specify the form type, such as ITR 1, 2 and so on, without entering the following information on the Return Acknowledgement Sheet screen: o Receipt year o Acknowledgement year o Assessment year

To clear or delete a record for Deduction u/ch IV or VI or Loss Carry Forward, delete the row for that particular record by clicking the Delete Row button. Do not clear the record by using the Backspace or Del key.

Always enter both the amount for Deduction u/ch IV or VI and the

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appropriate code. Else, the system displays an error message prompting you to enter the missing information.

Concept

Color Coding in ITR Forms

The forms in AST are color coded. This helps to identify whether a field is mandatory or optional.

The color coding for text labels is:

Red colored labels for mandatory fields

Blue colored labels for fields that are calculated automatically

Black colored labels for optional fields

The color coding for text entry fields is:

Dark green color for fields used to capture assessee provided values

Blue color for fields that are calculated automatically

Yellow color for fields used for computation

White color for fields that are calculated by the system from schedules

Red color for fields where there is a mismatch between the values entered by you and the values calculated by the system

Task

Inquiring and Updating Returns

You can execute a query to view the details of a return and update the details, if required.

To inquire and update returns:

1. Select the Processing menu on the AST main window. 2. Select the Returns option. The Return Acknowledgement Sheet

screen is displayed. 3. Click the ENT QRY icon. 4. Type the PAN and assessment year in the PAN and Ast Yr fields. 5. Click the EXEC icon to view the return filed by the assessee in the

specified assessment year. 6. Make the required changes in the return.

Note: You can only update returns for which processing is not complete.

7. Click the SAVE icon.

CYU

Q1. Identify the color code that is used to depict a mismatch between the values entered and those calculated by the system. (There is only one correct answer.)

a. Yellow b. White c. Blue d. Red

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Q2. Identify the steps that need to be performed after entering the return details. (There is more than one correct answer.)

a. Process the return u/s 143(1). b. Initiate the processing. c. Select the Reviewed checkbox. d. Click the SAVE icon.

Q3. Which of the following buttons can you click to navigate to the schedules in the ITR forms? (There is only one correct answer.)

a. The Return Details button b. The More button c. The ITR-Schedule button

Summary


After creating bundles and adding RRR entries, you need to add the details of the manually-filed returns in AST.

Returns can be added by: o Querying the RRR entry and entering the remaining details o Entering the return details directly

The data from the hard copy return is entered into the system to create an electronic copy of the return details.

While adding the return, enter the details exactly the way they appear in the hard copy of the return.

Select the Reviewed checkbox and click the SAVE icon after entering the return details.

You can execute a query to view the details of a return and update the details, if required.

You can only update returns for which processing is not complete.

Answers

Q1: d; Q2: c, d; Q3: b

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Duration

Topic 13: Managing Different Types of Returns

20 minutes

Concept

An Overview

This topic will provide you an overview of the different types of Income Tax Return (ITR) forms and the way of processing them in AST. In addition, you will learn about the tasks that need to be performed for processing e-filed returns.


Identify the different types of returns.

Identify the different ways of filing returns.

Understand the workflow for processing manual and e-filed returns in AST.

Enter ITR V.

Concept

Introduction

The Income Tax Department has released different types of forms that the taxpayers can use to submit their annual returns. These forms have been designed based on the status of the assessee and their source of income.

The following types of ITR forms are used since 2007-08:

ITR 1

ITR 2

ITR 3

ITR 4

ITR 5

ITR 6

ITR 7

ITR 8

Concept

ITR 1

ITR 1 is applicable only for Individuals drawing income from:

Salary

Pension

Family pension

Interest

However, Individuals cannot use ITR 1 if they have:

Earned dividend income, which is exempt from tax

Brought-forward losses from earlier years that needs to be adjusted

Paid interest on home loan

Clubbed income from different sources

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Concept

ITR 2

ITR 2 is applicable for Individuals and Hindu Undivided Families (HUFs) not drawing income from business or profession.

Concept

ITR 3

ITR 3 is applicable for Individuals and HUFs who are partners in a firm and do not have a proprietary business or profession.

Concept

ITR 4

ITR 4 is applicable for Individuals and HUFs drawing income from proprietary business or profession.

Concept

ITR 5

ITR 5 is applicable for Firms, Association of Persons (AOPs), and Body of Individuals (BOIs).

Concept

ITR 6

ITR 6 is applicable for all Companies, except for the ones claiming exemption under section 11.

Concept

ITR 7

ITR 7 is applicable to Persons including Companies to furnish a return under any of the following sections:

139(4A)

139(4B)

139(4C)

139(4D)

Concept

ITR 8

ITR 8 is applicable in case the assessee needs to file a return for fringe benefits.

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Concept

Filing Returns

Income Tax Department offers two different ways in which the assessees can file their returns:

Fig: Ways for filing returns

Manual filing: Is the traditional and the most common way of filing returns. To file returns this way, the assessee needs to fill a hard copy of the ITR form and submit it at the nearest IT office. The Department also allows intermediaries to file the manual returns on behalf of the assessees.

Electronic filing (e-filing): Is a relatively new method for filing returns. It allows the assesses to file their returns online by logging on to the ITD Web site. The assessees need to download the software for filing the return, enter their details, and then, submit their return online. e-Filing can also be done in two ways:

o With a digital signature: This method requires the assessees to furnish their e-returns with a digital signature, which is considered as a proof of submission by the Department. A digitally-signed e-return does not warrant any further action from the assessee.

o Without a digital signature: The assessees who do not possess a digital signature can submit their returns without the digital signature. After submitting the return, they need to print two copies of the ITR V form that is generated automatically. Then, they need to submit the printed copies of the ITR V form at the nearest IT office within 15 days of filing the returns electronically.

Concept

Processing Manually-Filed Returns

The workflow for processing a manually-filed return consists of the following five steps:

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1. Creating bundles 2. Entering data in RRR 3. Adding returns 4. Initiating processing 5. Processing the returns u/s 143(1)

Fig: Workflow for processing manually-filed returns

Concept

Processing e-Filed Returns

The workflow for processing e-filed returns includes the following steps:

Fig: The workflows for processing e-filed returns

1. Entering ITR V: Needs to be done only for the e-filed returns without digital signature. For such returns, the assessee prints the ITR V form generated online, signs it, and submits it to the IT department. This paper copy of the ITR V submitted by the assessee is used by AO for entering

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the information in AST.

2. Reviewing e-filed returns: Is the step to indicate that the e-filed returns are ready for processing. All the data for the e-filed returns already exists in the system. Therefore, the returns just need to be reviewed.

3. Initiating processing: Is same as the step for the manual returns.

4. Processing the return u/s 143(1): Is same as the step for the manual returns.

Concept

ITR V: What It Is?

ITR V is a single-page receipt-cum-verification form. It is applicable for the assessees who file their returns electronically but without a digital signature.

After the return has been filed electronically by an assessee, the ITD Web site automatically generates an ITR V form. The assessee needs to submit a duly verified copy of ITR V at the nearest IT office.

Entering ITR V in AST is a step to replicate the manual ITR V form received from the assessees who have e-filed their returns without a digital signature.

Task

Entering ITR V

The hard copy of the ITR V form submitted by the assessee should be available for entering ITR V in AST.

To enter an ITR V form, you need to fill in the following details in the ITR-V Receipt Form screen:

e-Filing acknowledgement number

PAN

Assessment year

Form type

e-Filing date

ITR V submission date

ITR V acknowledgement number

To enter an ITR V return:

1. Click the Processing menu on the main AST window. 2. Select the ITRV Entry option. The ITR-V Receipt Form screen is

displayed.

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Fig: The ITR-V Receipt Form screen

3. Type the appropriate values in the E-Filing Ack, No PAN, and Asst Yr fields.

4. Click the LoV icon for the Form Type field to select an appropriate value from the list available.

5. Click the OK button. Type the appropriate values in the Tax Payable/Refund, E-Filing Date, Date of ITR V Submitted, and ITR V Ack. No fields.

6. Click the SAVE icon to save the ITR V entry. 7. Click the EXIT icon to close this screen.

Task

Reviewing the Return

AO reviews a return after the ITR V form has been submitted by the assessee. The AO needs to select the Reviewed checkbox on the Review Acknowledgement Sheet screen to indicate that the return has been reviewed.

To review a return:

1. Click the Processing menu on the main AST window. 2. Select the Processing u/s 143(1) option. The Processing screen is

displayed.

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Fig: The Processing screen

3. Click the ENT QRY icon. 4. Type the assessment year in the Assessment Year field. 5. Type PAN in the PAN field. 6. Click the Return Details button. The Return Acknowledgement Sheet


Fig: The Return Acknowledgement Sheet screen

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7. Select the Reviewed checkbox. 8. Click the SAVE icon. 9. Click the EXIT icon.

CYU

Q1. What steps will you perform for processing a manually-filed return? (There is more than one correct answer.)

a. Enter ITR V b. Create bundles c. Add RRR d. Add returns e. Initiate processing f. Review the return g. Process the returns u/s 143(1)

Q2. Within how many days of e-filing a return is the assessee required to submit the ITR V form? (There is only one correct answer.)

a. Within 30 days of e-filing returns without a digital signature b. Within 15 days of e-filing returns without a digital signature c. Within 15 days of e-filing returns with a digital signature d. Within 30 days of e-filing returns with a digital signature

Summary


ITD offers eight types of returns based on the status and the source of income of the assessee: o ITR 1 o ITR 2 o ITR 3 o ITR 4 o ITR 5 o ITR 6 o ITR 7 o ITR 8

The two ways in which an assessee can file returns are: o Manual filing o e-Filing, which can be of two types:

o With a digital signature o Without a digital signature—ITR V is filed for such type of returns

The workflow for processing a manually-filed return consists of the following five steps: 1. Creating bundles 2. Entering RRR 3. Adding returns 4. Initiating processing

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5. Processing the return

Entering ITR V in AST is the first step towards processing e-returns without a digital signature. This step is not needed for returns e-filed with digital signature.

Answers

Q1: b, c, d, e, g; Q2: b

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Duration

Practice Session

40 minutes

Practice

Scenario: Perform the following tasks: 1. Access the Return Acknowledgement Sheet screen. 2. Enter the ITR V for the PAN for assessment year 2008-09. 3. Review the return for the PAN for assessment year 2008-09. 4. Prepare the return for initiation of processing.

Inputs: Ensure that you have the AO code and the PAN allocated to you by the trainer. Use the Returns option in the Processing menu to enter the ITR V form.


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Duration

Topic 14: Initiating Processing

15 minutes

Concept

An Overview

After returns are entered in AST, you need to prepare them for processing. In this topic, you will learn the steps for making the returns ready for processing.


Initiate processing of returns.

Concept

What It Is?

Initiating processing is an important step because the returns can be processed u/s 143(1) only after they are initiated successfully.

You need to ensure that all the returns in the bundle are reviewed. If there are unreviewed returns then, you cannot initiate a bundle.

Concept

Difference for Manual & E-Filed Returns

The process of initiation of returns is performed for both manual and e-filed returns.

To initiate the processing for manually-filed returns, you need to ensure that the following tasks have already been performed in AST:

Creation of bundles

Addition of entries in RRR

Entry of returns

Fig: Prerequisites for initiating the processing of manually-filed returns

To initiate the processing for e-filed returns, you need to ensure that the following tasks have already been performed in AST:

Entry of ITR V form

Selection of the Reviewed checkbox on the Return Acknowledgement

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Sheet screen

Fig: Prerequisites for initiating processing of e-filed returns

Task

Initiating Processing of Returns

To initiate processing of returns, the following information should be available:

Bundle AO code

Receipt year

Counter number

Bundle number

To initiate processing:

1. Click the Processing menu on the main AST window.

Fig: The Processing menu

2. Select the Initiate Processing option. The Initiation of Processing screen is displayed.

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Fig: The Initiation of Processing screen

3. Click the ENT QRY icon to enter the query mode. 4. Type the appropriate information in the following fields:

Bundle AO Code

Rcpt Yr (receipt year)

Bundle Number 5. Click the EXEC icon to execute the query. Notice that the values in the

Allocated AO Code and other fields are populated automatically. 6. Click the drop-down menu for the Processing Creation? field to select

the creation value for the bundle. 7. Select Yes from the drop-down menu. 8. Click the SAVE icon. 9. Click the On Line button. A message is displayed on the screen indicating

that the bundle is ready for processing. 10. Click the OK button to continue. The value in the Create Status field

changes to Created.

Fig: The changed value in the Create Status field

11. Click the EXIT icon to close the Initiation of Processing screen.

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CYU

Q1. Which of the following tasks can you perform on the Initiate Processing screen of the AST module? (There is more than one correct answer.)

a. Initiating mismatch report b. Creating bundles c. Initiating processing d. Adding returns e. Adding entries in RRR

Summary


Returns can be processed only after they have been initiated. Initiating processing of returns is a mandatory step performed after entering returns in the AST module.

Initiating processing of returns is performed for manually filed as well as e-filed returns.

Returns are always initiated bundle-wise by navigating to the Initiate Processing screen.

The following information is required while initiating processing through the Initiate Processing screen: o Bundle AO code o Receipt year o Counter number o Bundle number

Answers

Q1: a, c

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Duration

Topic 15: Processing Returns u/s 143(1)

30 minutes

Concept

An Overview

After returns are entered and initiated in AST, you need to process them. In this topic, you will learn the steps for processing different types of returns and matching untallied challans to give tax credit.


Inquire on return details.

Process returns u/s 143(1).

Process refunds.

Match untallied challans.

Maintain demands.

Delete proceedings u/s 143(1).

Concept

What It Is?

Returns can be processed u/s 143(1) only after they have been initiated. During processing, you need to compute the tax for the assessee under the applicable heads. After the returns are processed, a demand or refund may be generated for the assessee based on the advance tax, self assessment tax, and TDS entries available in OLTAS.

The task of processing returns u/s 143(1) is divided into the following two sub-tasks:

Inquiring on return details

Processing the return

Task

Inquiring on the Return Details

The first step that needs to be performed before processing a return is to query it. The process of querying on the return details is performed by navigating to the Processing u/s 143(1) screen in AST.

You can inquire on the return details by using one or more of the following search parameters:

PAN

Assessment year

Bundle number

Acknowledgment number

Bundle AO code

Date on which the return was filed

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To inquire on the return details:


displayed.

Fig: The Processing screen

3. Click the ENT QRY icon or press the F7 key to enter a new query. 4. Type the assessment year in the Assessment Year field. 5. Type PAN in the PAN field. 6. Click the EXEC icon or press the F8 key to execute the query. The return

details for the specified PAN and assessment year are displayed. 7. Click the EXIT icon to close this window.

Task

Processing ITR 1-ITR 4

All returns are processed from the Processing u/s 143(1) screen in AST. Before processing a return, you need to ensure that the return is available in AST and has been initiated. The steps to process ITR 1, ITR 2, ITR 3, and ITR 4 are same.

To process ITR1-ITR4 type of returns:

1. Click the Processing menu on the main AST window. 2. Select Processing u/s 143(1) option. The Processing screen is

displayed. 3. Click the ENT QRY icon to enter the query mode.

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4. Type appropriate values in the Assessment Year and PAN fields. 5. Click the EXEC icon to execute the query.

The details of the return filed by the assessee for that assessment year are displayed on the screen. The Return section shows the acknowledgment number, bundle number, date of filing, and return income. The Processing Details section shows the date of initiation of processing with the status of the proceeding as In Progress in the Status field.

Fig: The return and processing details on the Processing screen

6. Click the Adjustments Demand button. The Demand Processing screen is displayed.

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Fig: The Demand Processing screen

7. Click the Details button for the TCS/TDS field. A message box is displayed with the number of entries and the amount claimed by the assessee under TDS and TCS.

Fig: The number and amount of entries claimed under TDS and TCS

8. Click the Close button to continue. The TDS Entries screen appears. 9. Select the TDS option to view the TDS payments for the assessee. The

details of the TDS entries claimed by the assessee, if any, are displayed

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on the screen. 10. Select the Credit Flag checkbox to give credit for the entries, and click

the SAVE icon. 11. Click the EXIT icon to close the TDS Entries screen. The Demand

Processing screen is displayed. 12. Click the Compute button to compute the tax.

AST computes the tax based on the income statement filed by the assessee and the tax credit given. The computation may result in a demand or refund for some cases. The computation results are displayed on the screen. In this demo, a demand has been generated.

13. Click the SAVE icon to save the computation results. 14. Click the Print Results button to complete the processing. The Print

Information dialog box is displayed with the appropriate proceedings' outputs already selected.

15. Click the OK button to continue. 16. Click the EXIT icon to close the Demand Processing screen. The

Processing screen is displayed.

Note that the Status changes to Completed and the date of order is populated. This indicates that the return has been processed.

17. Click the EXIT icon to close the Processing screen.

Task

Processing ITR 5-ITR 6

ITR 5 and ITR 6 include two types of returns: FBT and regular. Both these returns need to be processed while processing ITR 5 and ITR 6. The steps to process ITR 5 and ITR 6 are same.

To process ITR5-ITR6 type of returns:


displayed. 3. Click the ENT QRY icon to enter the query mode. 4. Type appropriate values in the Assessment Year and PAN fields. 5. Click the EXEC icon to execute the query.

The details of the return filed by the assessee for that assessment year are displayed on the screen. The Return section shows the acknowledgment number, bundle number, date of filing, and return income. The Processing Details section shows the date of initiation of processing with the status of the proceeding as In Progress in the Status field.

6. Click the Adjustments Demand button. The Demand Processing screen is displayed with the FBT Processing button enabled.

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Fig: The Demand Processing screen with the FBT Processing button enabled

7. Click the Details button for the Oth Payments field. The Regular Tax Payments/Refunds screen is displayed.

8. If the remark for the challan is Tallied, select the Claim checkbox for the claim entry to give tax credit to the assessee.

9. Click the SAVE icon. 10. Click the EXIT icon to return to the Demand Processing screen. 11. Click the FBT Processing button to view the FBT details. The FBT Demand

Processing screen is displayed.

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Fig: The FBT Demand Processing screen

12. Click the Details button for the Oth. Payments field. The FBT- Regular Tax Payments/Refunds screen is displayed.

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Fig: The FBT – Regular Tax Payments/Refunds screen

13. If the remark for the challan is Tallied, select the Claim checkbox for the FBT challan to give tax credit to the assessee.

14. Click the SAVE icon to save the changes. 15. Click the Exit icon to close the FBT- Regular Tax Payments/Refunds

screen. The FBT Demand Processing screen is displayed again. 16. Click the Compute button to compute the FBT demand or refund for the

assessee. A warning message is displayed indicating the number of challans to which you have given tax credit.

17. Click the OK button to continue. Notice the value of tax is populated in the fields automatically. After computation, you can modify interest under any section as per your discretion.

18. Type the modified amount under the Modified field. 19. Click the SAVE icon to save the computed tax. 20. Click the EXIT icon. The Demand Processing screen is displayed. 21. Click the Compute button to compute tax for the assessee. A warning

message is displayed indicating the number of challans to which you have given tax credit.

22. Click the OK button to continue. The tax details are populated. After computation, you can modify interest under any section as per your discretion.

23. Type the modified amount under the Modified field. 24. Click the SAVE icon to save the changes. A warning message is displayed

indicating the number of challans to which you have given tax credit. 25. Click the OK button to continue.

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26. Click the Print Results button to print the tax calculations. The Print Information dialog box is displayed with the appropriate proceedings' outputs already selected.

27. Click the OK button to print the results.

Task

Processing Refunds

You process refunds after computation of tax. Before releasing refunds, you need to specify the bank details and communication address.

Note:

The FBT refunds are not processed by Refund Banker currently. You need to manually add the refund vouchers for such cases.

On the Refunds due to Regular Demand screen: o Click the Ledger Details button to view the details of the assessee's

ledger. This will display the details of all payments made by and to the assessee.

o Click the Refund Address button to update the refund address.

To process refund cases:

1. After computing the refund, click the drop-down menu for the Ref. Stat field on the Demand Processing screen.

Fig: The Ref. Stat field on the Demand Processing screen

2. Select the Released option from the list to release the refund for the

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assessee. 3. Click the SAVE icon to save the changes. 4. Click the Refund Details button to enter the refund details. The screen to

enter the refund details is displayed. A message appears indicating that address for refund does not exist.

Fig: The message indicating that communication address does not exist

5. Click the OK button to continue. 6. Click the SAVE icon to populate the assessee's address. The address from

AST is populated in the Address field.

Fig: The refund details screen with the communication address populated

7. Type the refund amount in the Regular Refund and/or FBT Refund section, as required. If the details for more than one bank account are entered in AST, an error message appears.

8. Click the OK button to continue. 9. Click the Bank Details button to specify the bank details for refund. The

Assessees bank acc. details screen is displayed. The details of all the banks for the assessee appear on the screen.

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Fig: The Assessee bank acc details screen

10. Select the entry and click the DEL icon to delete the entries that are not required. The extra entries are deleted.

11. Make changes in the fields for the existing entry, as required. You can also delete all the entries and enter new bank details on this screen.

12. Click the SAVE icon to save the changes made to the bank details. 13. Click the EXIT icon to close the Assessees bank acc. details screen. 14. Click the EXIT icon again to close the Refunds due to Regular Demand

screen. The Demand Processing screen is displayed. 15. Click the Print Results button to complete the processing of the refund.

Task

Matching Untallied Challans - Case 1

If the details of the challan entered by the assessee match with the challan details in OLTAS, AST shows the status of the challan as ‘Tallied’ on the Regular Tax Payments/Refunds screen. However, if a match is not found for a challan, the status is displayed as ‘Untallied’.

To give tax credit to such a challan, search for a matching entry in the system on basis of PAN. If a matching entry is found and is flagged as ‘R’ (Ready to Post), it can be copied onto the Regular Tax Payments/Refunds screen to replace the ‘Untallied’ challan details. You can then allow the tax credit for the challan.

To match untallied challans: 1. Click the Details button for the Oth Payments field on the Demand

Processing screen. The Regular Tax Payments/Refunds screen is displayed with Untallied. No matching record found displayed in the Remarks field for the challan.

2. Click the Search Challan on PAN button to match this challan. The regular Challan Details screen is displayed with the list of challans for that PAN.

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Fig: The Challan Details screen

3. Select the matching challan entry that shows the Post Flag as R. 4. Click the Copy selected Record button. The Regular Tax

Payments/Refunds screen is displayed again. 5. Click the SAVE icon. The challan is matched and the text in the Remarks

field changes to Tallied. 6. Select the Claim checkbox. 7. Click the SAVE icon. 8. Click the EXIT icon.

Task


When you search for a matching challan for challans with status as ‘Untallied’ on the Regular Tax Payments/Refunds screen, you may find challans that match but a flag ‘C’ (cannot be claimed - go to OLTAS for claim) is displayed. Such challans cannot be claimed even by copying.

Refer to the Maintaining Challans in OLTAS topic for more details on such challans.

Task


There could also be challans that show a status of ‘assessment year mismatch’ or ‘minor code mismatch’. For such challans, there is a mismatch in the details

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entered by the assessee and the details available in the system. Therefore, they cannot be claimed.

To claim such challans, you need to compare the details in AST with the details in OLTAS. You then need to make the required corrections to match the details in the two systems and save the changes. This changes the status of the challan to 'Tallied' and you can give credit for the challan.

To correct assessment year or minor code mismatch:

1. Click the Adjustments & Demand button on the Processing screen. The Demand Processing screen is displayed.

2. Click the Details button for the Oth Payments field. The Regular Tax Payments/Refunds screen is displayed. Notice that the remarks for the challan shows Assessment year mismatch.

3. Click the Compare Challan button to compare the details of this challan with the details in OLTAS and make corrections. The Comparison of OLTAS and AST challan Detail screen is displayed with the details of challans in AST and OLTAS.

Fig: Comparison of OLTAS and AST challan Detail screen

4. Click the Correct AST Yr/Minor Head code button. A message box is displayed to confirm correction of the challan details as per the entry in AST.

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Fig: Message for confirmation of change in assessment year or minor head code

5. Click the OK button to continue. The assessment year/minor code is corrected in OLTAS.

6. Click the EXIT icon. The Regular Tax Payments/Refunds screen is displayed.

7. Click the SAVE icon. Notice that the text in the Remarks field has changed to Tallied.

8. Select the Claim checkbox for the challan. 9. Click the SAVE icon. 10. Click the EXIT icon to close the Regular Tax Payments/Refunds screen.

The Oth Payments field shows that credit has been given for the challan.

Task

Viewing the Previous Demand

If you want to modify a previous demand, you need to select the previous demand by clicking the Previous Demand button on the Demand Processing screen. This button is enabled if there is a previous demand. On the Previous Demand screen, you can make changes. Once you update a previous demand, it is treated as the latest demand by the system.

Task

Deleting the Demand Details

AST allows you to delete the demand generated. However, you can do so only if the processing has not been completed.

To delete the demand details: 1. Click the demand details on the Demand Processing screen. 2. Click the DEL icon. 3. Click the SAVE icon. 4. Click the EXIT icon.

Task

Deleting a Proceeding u/s 143(1)

An initiated proceeding can be deleted in AST by navigating to the Processing u/s 143(1) screen. Before deleting a proceeding u/s 143(1), you will be required to query the return. In addition, when you delete proceeding for ITR 5 or ITR 6, remember to delete the associated FBT return as well.

To delete a proceeding u/s 143(1):


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displayed. 3. Click the ENT QRY icon. 4. Type PAN in the PAN field. 5. Type the assessment year in the Assessment Year field. 6. Click the EXEC icon. 7. Ensure that in the Processing Details section, the text in the Status field

is displayed as In Progress. Click the Date Started field.

Note: You cannot delete proceedings with the Completed status displayed in the Status field.

8. Click the DEL icon to delete the proceeding. A confirmation message is displayed.

9. Click the OK button to confirm the deletion. All the fields in the Processing Details section become blank. This indicates that the proceeding has been deleted.

CYU

Q1. Which of the following tasks can you perform on the Processing u/s 143(1) screen in AST? (There is more than one correct answer.)

a. Initiating mismatch report b. Creating bundles c. Processing returns d. Inquiring on return details e. Adding returns f. Deleting proceedings

Q2. While processing returns, FBT needs to be computed for which of the following ITRs? (There is only one correct answer.)

a. ITR 1 b. ITR 5 c. ITR 3

Q3. While deleting a proceeding, the cursor should be placed in which of the following fields of the Processing screen? (There is only one correct answer.)

a. Date Filed b. Date Started c. Acknowledgement Number d. Return Income

Summary


The task of processing returns u/s 143(1) needs to be performed to compute an assessee’s tax under different heads.

All returns are processed by navigating to the Processing u/s 143(1) screen in AST.

The task of processing returns u/s 143(1) is divided into the following two

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sub-tasks: o Inquiring on return details o Processing the return

You can inquire on return details by using one or more of the following search parameters: o PAN o Assessment year o Bundle number o Acknowledgment number o Bundle AO code o Date on which the return was filed

The steps for processing these ITR1, ITR2, ITR3, and ITR 4 in AST are same.

Before processing a return, you need to ensure that the return is available in AST and has been initiated.

ITR 5 and ITR 6 include two types of returns: FBT and regular. Both these returns need to be processed while processing ITR 5 and ITR 6.

If the details of the challan entered by the assessee match with the challan details in OLTAS, AST shows the status of the challan as ‘Tallied’.

If a match is not found for a challan, the status is displayed as ‘Untallied’ on the Regular Tax Payments/Refunds screen.

To claim challans with assessment year or minor code mismatch, you need to compare the details in AST with the details in OLTAS and make necessary corrections.

If you want to modify a previous demand, you need to select the previous demand by clicking the Previous Demand button on the Demand Processing screen. This button is enabled if there is a previous demand.

When you delete proceeding for ITR 5 or ITR 6, remember to delete the associated FBT return as well.

Answers

Q1: c, d, f; Q2: b; Q3: b

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Duration

Topic 16: Maintaining Tax Payments

30 minutes

Concept

An Overview

In this topic, you will learn how to inquire about various tax payments for a PAN. You will also learn the different ways to query in OLTAS for the challan details of an assessee.


Inquire about various tax payments.

Maintain TDS payments.

Query for challans in different ways.

Correct entries posted in IRLA.

Task

Inquiring About Various Tax Payments

To inquire about TDS and advance tax payments corresponding to a PAN, use the Details button available on the Demand Processing screen. Whereas, to inquire about the FBT payments, use the Details button available on the FBT Demand Processing screen.

Note: The steps to inquire about TDS payments are the same as the steps to inquire about advance tax payments.

To inquire about the regular tax payments:

1. On the Demand Processing screen, click the Details button for the Oth Payments field. The Regular Tax Payments/Refunds screen appears.

Fig: The Regular Tax Payments/Refunds screen

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2. Click the Search Challan on PAN button to search for challans. The Challan Details screen is displayed with the details of all the advance tax challans corresponding to the PAN.


3. Click the EXIT icon to close the Challan Details screen. 4. Click the EXIT icon to close the Regular Tax Payments/Refunds screen.

The Demand Processing screen is displayed.

To inquire about the FBT payments:

1. On the Demand Processing screen, click the FBT Processing button. The FBT Demand Processing screen is displayed.

2. Click the Details button for the Oth. Payments field. The FBT - Regular Tax Payments/Refunds screen is displayed with details of the FBT payments.

3. Click the Search Challan on PAN button to view the challan details. The Challan Details screen is displayed with challans for the FBT payments.

4. Click the EXIT icon to close this screen.

Task

Maintaining TDS Payments

On the screen for entering the TDS payments, the entries existing in the TDS module for that PAN and assessment year are displayed. These entries can also be copied to AST.

The TDS Entries screen is used to add, delete, update, and inquire about TDS

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payments and put them on hold, if required. If you are not satisfied with the TDS certificates attached with the return, you can put the existing entries in the TDS module on hold.

Remember the following before taking any action on the TDS entries:

While adding the TDS entries in AST, you don’t need to specify the Posted to IRLA option. The system automatically determines if a particular TDS entry should be posted to the ledger. If at least one TDS entry for a given PAN and assessment year is found appropriate, all subsequent entries are automatically posted to IRLA.

If a TDS entry is posted to IRLA, then that entry cannot be deleted.

While putting the TDS entries on hold, the fields other than Status and Remarks cannot be changed.

To delete TDS payments:

1. Click the Processing menu. 2. Select the Processing u/s 143(1) option. The Processing screen is

displayed. 3. Click the ENT QRY icon. 4. Type relevant values in the Assessment Year and PAN field. 5. Click the EXEC icon. The details of the proceedings for the assessee are

displayed. 6. Click the Adjustments & Demand button. The Demand Processing

screen is displayed. 7. Click the Details button for the TCS/TDS field. A message box is

displayed with details of the TDS entries for the assessee.

Fig: The message box with the details of the tax entries claimed by the assessee

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8. Click the Close button. A message is displayed indicating that matching has been completed.

Fig: Message indicating the completion of matching

Note: If the refund is more than 25,000, a warning message is displayed for matching the TDS entries with the NSDL records. Click the OK button to close the message and continue.

Fig: Message for cases where the refund claimed is more than 25,000

9. Click the OK button to continue. 10. Select the TDS radio button to view the TDS entries. The details of the

TDS claimed by the assessee are displayed.

Fig: The TDS entries claimed by the assessee on the TDS Entries screen

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11. Select the Amt paid/credited field for the TDS entry and click the DEL icon to delete the record. A message is displayed asking to confirm deletion.

12. Click the OK button to confirm the deletion. The TDS entry is deleted. 13. Click the SAVE icon. 14. Click the EXIT icon.

Task

Querying for Challans - Way 1

You can query challans corresponding to a PAN and financial year in different ways. One way is to query the challans on the range of Nodal Scroll Date on the Challan Details screen.

To query for challans from the OLTAS 31 screen:

1. Click the TAS menu on the main ITD application window. 2. Click the Queries menu on the main TAS window.

Fig: The Queries menu in TAS

3. Select the OLTAS Instruction 31-(Pan based collection) option. The OLTAS 31-PAN BASED COLLECTION screen is displayed.

Fig: The OLTAS 31-PAN BASED COLLECTION screen

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4. Click the ENT QRY icon. 5. Type a date range in the From and To fields. 6. Click the EXEC icon. The details for the specified date range are

displayed in the lower part of the screen.

Fig: The results of the query on challans

7. Click the Challan Details button. The challan details for the specified date range are displayed on the screen.

Fig: The details of the challans

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8. Click the EXIT icon to return to the previous screen.

Task


You can also search for challans for a PAN based on the amount of the challan and the Nodal Scroll Date range.

To query for challans for a PAN based on amount and date: 1. Click the TAS menu on the main ITD application window. The main TAS

window is displayed. 2. Click the Maintain Challan menu.

Fig: The Maintain Challan menu in TAS

3. Select the Challan Details(Suspense/Change PAN,TAN/Corr option. The Challan Details screen is displayed.


4. Click the ENT QRY icon. 5. Select the appropriate option from the LOV list for Major Head and Minor

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Head fields. 6. Type the appropriate values in the PAN field. 7. Type the amount of the challan and select the query parameter as ‘=’, ‘<=’

or ‘>=’. 8. Type the date range in the Nodal Scroll Date field. 9. Select the appropriate option to indicate the type of challans you want to

view. The screen has five options, which include options for all challans, suspense challans, and challans requiring correction for various reasons.

10. Click the EXEC icon. The challan details for the specified query criteria are displayed. A summary of the number of challans and the total amount of challans is also displayed below the list of challans.

11. Click the EXIT icon.

Task


You can use the ADVISE CORRECTION screen in TAS to query for challans corresponding to a PAN and make corrections.

To query for challans on the ADVISE CORRECTION screen:

1. Click the TAS menu on the main ITD application window. The main TAS window is displayed.

2. Click the Maintain Challan menu. 3. Select the Correction(TAS) option. The ADVISE CORRECTION screen

is displayed.

Fig: The ADVISE CORRECTION screen

4. Click the Select for New Correction button. The screen for entering the parameters for selection is displayed.

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Fig: The screen for entering parameters for selection

5. Type appropriate value in the PAN field to view the challans. 6. Click the Select button. A list of all challans for the specified PAN are

displayed.

Fig: The list of challans for the specified PAN

7. Select any challan based on the amount and the date of payments to view its detail and click the OK button. The challan details are displayed on the ADVISE CORRECTION screen.


Task


You can use the CHALLAN CORRECTION STATUS screen to query for challans corresponding to a PAN. You can also specify the query criteria to display the challans on this screen.

To query for challans on the CHALLAN CORRECTION STATUS screen:

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1. Click the TAS menu on the main ITD application window. 2. Click the Queries menu on the main TAS window. 3. Select the Corrected Challan / Refund option. The CHALLAN

CORRECTION STATUS screen is displayed.

Fig: The CHALLAN CORRECTION STATUS screen

4. Click the ENT QRY icon. 5. Type values in the required fields to specify the query criteria and click the

EXEC QRY icon. The challan details are displayed on the screen. 6. Click the EXIT icon.

Task

Correcting Challans Posted in IRLA

You can make corrections in challan entries posted in IRLA using the ADVISE CORRECTION screen. However, it is important to note that corrections can be made only to the Name and Remarks fields. Data in other fields cannot be edited to make any changes.

To correct challans posted in IRLA:

1. Click the TAS menu on the main ITD application window. The main TAS window is displayed.

2. Click the Maintain Challan menu. 3. Select the Correction(TAS) option. The ADVISE CORRECTION screen

is displayed. 4. Click the Select for New Correction button. The screen for entering the

parameters for selection is displayed.

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5. Type appropriate value in the PAN field to view the challans. 6. Click the Select button. A list of all challans for the specified PAN are

displayed. 7. Select any challan based on the amount and the date of payments to view

its details 8. Click the OK button. The challan details are displayed on the ADVISE

CORRECTION screen. 9. Make the required changes in the Name and/or Remarks fields. 10. Click the SAVE icon to save the changes. 11. Click the EXIT icon.

CYU

Q1. Which of the following screens is used to inquire about the FBT payments? (There is only one correct answer.)

a. The FBT Demand Processing screen b. The FBT Challans screen c. The FBT Processing screen

Q2. While correcting challans posted in IRLA, which of the following fields can be edited to make corrections? (There is more than one correct answer.)

a. Payment Date b. AO Code c. Name d. Remarks

Summary


Before giving a tax credit, the AO might be required to add, delete, update, or inquire challans corresponding to a PAN and assessment year.

To inquire about TDS and other advance tax payments corresponding to a PAN, use the Details button available on the Demand Processing screen.

To view the FBT payments, use the Details button available on the FBT Demand Processing screen.

If you are not satisfied with the TDS certificates attached with the return, you can put the existing entries in the TDS module on hold.

On the screen for entering the TDS payments, the entries existing in the TDS module for that PAN and assessment year are displayed. These entries can also be copied to AST.

There are four ways to query for challans corresponding to a PAN and assessment year: o Specifying the Nodal Scroll Date range on the Challan Details screen o Specifying the PAN, amount, and the Nodal Scroll Date range on the

Challan Details screen o Specifying the PAN on the ADVISE CORRECTION screen o Using the CHALLAN CORRECTION STATUS screen

You can make corrections in the Name or Remarks fields for challans posted in IRLA using the ADVISE CORRECTION screen.

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Answers

Q1: a; Q2: c, d

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Updating Address in AST

Duration

Topic 17: Updating Address in AST

20 minutes

Concept

An Overview

In this topic, you will learn the steps for updating the assessee’s address in AST.


Update address while adding the return details.

Update address while processing the return u/s 143(1).

Concept

What It Is?

AST uses the address entered in the return for communicating with the assessee. Therefore, it is important to update the correct address in the system.

You can update an assessee’s address in AST while:

Adding the return details

Adding the refund details during processing

Task

Updating Address While Adding Returns

When you add the return details, you can update the address by selecting the Change in address checkbox.

To update address while adding returns:

1. Click the Processing menu on the main AST window. 2. Select the Returns option. The Return Acknowledgement

Sheet screen is displayed. 3. Click the ENT QRY icon to enter the query mode. 4. Type the appropriate value in the Ast Year field. 5. Type the appropriate value in the PAN field. 6. Click the EXEC icon to execute the query. The return details

available in the RRR record are displayed. 7. Select the Change in address checkbox to change the address.

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Fig: The Change in address check box

The PAN CORRECTION PARAMETERS screen is displayed.

Fig: The PAN CORRECTION PARAMETERS screen

8. Type the updated address in the appropriate fields. 9. Click the SAVE icon to confirm the changes. 10. Click the EXIT icon to close the screen.

Task

Updating Address for Refund

While processing returns u/s 143(1), AST prompts you to verify the assessee’s communication address available in the system. If you confirm, the address available in AST is used for communicating with the assessee about the refund. If you don’t confirm, you need to update the address. AST then uses the updated address for communication.

The address for refund can be updated by clicking the Refund Details button on the Demand Processing screen.

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To update address for refund cases:

1. Click the Refund Details button on the Demand Processing screen. A message is displayed indicating that the communication address does not exist for the assessee in the system.

Fig: The Refund Details button on the Demand Processing screen

Fig: Message for communication address not available

2. Click the OK button to continue. 3. Click the Refund Address button to update the address. A

message is displayed showing the address available in AST and asking for a confirmation if this address should be used for sending the refund.

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Fig: The message for confirming communication address

4. You can:

Click the Yes button to use the existing address for refund.

Click the No button to change the address. This displays the Communication Address For Refund screen. Type the new address and click the SAVE icon.

Fig: The Communication Address For Refund screen

In both cases, a message is displayed stating that the address shown on the screen will be used for refund.

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5. Click the OK button. A message is displayed indicating that the communication address is updated.

6. Click the YES button to continue. 7. Click the EXIT icon to close the screen and return to the Demand

Processing screen.

CYU

Q1. When can you update the address of an assessee in AST? (There is more than one correct answer.)

a. While adding the return details b. When adding the refund voucher c. While matching tax entries d. While adding the refund details during processing

Q2. What should you do if the communication address shown by AST for a refund case is incorrect? (There is only one correct answer.)

a. Mark the refund as pending and issue a letter to the assessee. b. Use the address stored in AIS for communication. c. Enter and save the correct address.

Summary


AST uses the address entered in the return for communicating with the assessee. Therefore, it is important to update the correct address in the system.

Address in AST is updated while: o Adding the return details o Adding the refund details during processing

While processing returns u/s 143(1), AST prompts you to verify the assessee’s communication address available in the system for refund. You can confirm the address available in AST or update it.

Answers

Q1: a, d; Q2: c

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Duration

Practice Session

160 minutes

Practice

Scenario: Perform the following tasks: 1. Initiate the processing of the bundle that contains the return of the PAN

given to you. 2. Process the return for the PAN given to you for assessment year 2008-09.

3. Update assessee’s address in AST by using the screen for adding returns.



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Rectification, Penalty, and Scrutiny

Duration

Topic 18: Rectification Petition and Order

25 minutes

Concept

An Overview

A rectification application and a rectification order are created when an adjustment is required in the income statement of an assessee. In this topic, you will learn the steps for maintaining rectification applications and rectification orders in AST.


Add a rectification application.

Query a rectification application.

Update or delete a rectification application.

Add a rectification order.

Query a rectification order.

Update or delete a rectification order.

Concept

The Rectification Process

The rectification process is initiated when:

An AO receives an application for rectification from the assessee.

An AO, CIT Admin, or CIT Appeal add a rectification application suo moto to make adjustments to the assessee’s income statement.

In both cases, the details of the rectification application are entered in AST. A receipt for the application and a notice for the hearing are sent to the assessee.

After the hearing, the rectification order is passed u/s 154 or 155. The details of the order are entered in AST. However, the main text of the order is documented separately and not stored in AST.

The following two steps are performed in AST for rectification:

Maintaining rectification application

Maintaining rectification order

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Fig: A graphical representation of the concept

Task

Adding Rectification Applications

The rectification application filed by the assessee is recorded and updated in AST from the Rectification Application screen.

Note: The Receipt button, which allows the user to generate a receipt for the rectification application, is enabled only for AOs.

To add a rectification application:

1. Click the Rectification menu on the main AST window.

Fig: The Rectification menu

2. Select the Rectification Application option. The Rectification Application screen is displayed.

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Fig: The Rectification Application screen

3. Type the PAN in the PAN field and press the Tab key. The Concerned AO, Name, and Address fields will be automatically populated.

4. Type the appropriate values in the Ref. No., Date Filed, Asmt Year, and Filed By fields and press the Tab key. The Financial Year field will be automatically populated.

5. Click the LoV icon for the Section and r/w field to view a list of valid sections.

6. Select the appropriate option from the list and click the OK button. 7. Type any additional information in the Comments field. 8. Click the Type drop-down list. 9. Select the appropriate option from the available list. 10. Click the LoV icon for the Date of Order and Section field to view a list

of orders corresponding to the selected Type and the specified PAN and assessment year.

11. Select the appropriate option from the list and click the OK button. 12. Click the SAVE icon. 13. Click the EXIT icon.

Task

Querying Rectification Applications

To query a rectification application:

1. Click the Rectification menu on the main AST window. 2. Select the Rectification Application option. The Rectification

Application screen is displayed.

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3. Click the ENT QRY icon to enter the query mode. 4. Type the PAN in the PAN field. 5. Click the EXEC icon to execute the query. The results of the query are

displayed.

Note: To view all the available rectification applications, click the EXEC icon without entering values in any of the fields. Then, click the Next Record icon or the Previous Record icon to navigate from one record to another.

Task

Updating Rectification Applications

You can modify the details of a rectification application after retrieving it from AST.

To update a rectification application:


Application screen is displayed. 3. Click the ENT QRY icon to enter the query mode. 4. Type the PAN in the PAN field. 5. Click the EXEC icon to execute the query. The results of the query are

displayed. 6. Type the new values in the desired fields. 7. Click the SAVE icon to confirm the changes.

Note: You can update more than one rectification application at a time and save the changes together. However, you cannot update the status of a rectification application.

Task

Deleting Rectification Applications

To delete a rectification application:


Application screen is displayed. 3. Click the ENT QRY icon to enter the query mode. 4. Type the PAN in the PAN field. 5. Click the EXEC icon to execute the query. The results of the query are

displayed. 6. Click the DEL icon to delete the application. A warning message is

displayed seeking confirmation. 7. Click the OK button to proceed with the deletion. 8. Click the SAVE icon. 9. Click the EXIT icon to close the screen.

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Task

Adding Rectification Orders

The rectification order passed by a CIT Admin, CIT Appeal, AO, or ITAT is recorded and updated in AST from the Rectification Order screen.

Note: The Adjustments Demand button is enabled only when an AO logs in. This is because only AOs are allowed to make adjustments.

To add a rectification order:

1. Click the Rectification menu on the main AST window. 2. Select the Rectification Order option. The Rectification Order screen

is displayed.

Fig: The Rectification Order screen

3. Type the PAN in the PAN field and press the Tab key. The Concerned AO, Name, and Address fields will be automatically populated.

4. Type the appropriate value in the Asmt. Year field. 5. Click the LoV icon for the Section and r/w fields to view a list of valid

sections. 6. Select the appropriate option from the list and click the OK button. 7. Type any additional information in the Text field. 8. Click the LoV icon for the Reference Appeal Number, Date Filed and

Section fields to view a list of rectification applications for which the order has to be passed.

9. Select the appropriate option from the list and click the OK button.

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10. Click the SAVE icon. 11. Click the EXIT icon.

Task

Querying Rectification Orders

To query a rectification order:

1. Click the Rectification menu on the main AST window. 2. Select the Rectification Order option. The Rectification Order screen is

displayed. 3. Click the ENT QRY icon to enter the query mode. 4. Type the appropriate values in the PAN and Asmt. Yr fields. 5. Click the EXEC icon to execute the query. The results of the query are

displayed.

Note: To view all the available rectification orders, click the EXEC icon without entering values in any of the fields. Then, click the Next Record icon or the Previous Record icon to navigate from one record to another.

Task

Updating Rectification Orders

To update a rectification order:


displayed. 3. Click the ENT QRY icon to enter the query mode. 4. Type the appropriate values in the PAN and Asmt. Yr fields. 5. Click the EXEC icon to execute the query. The results of the query are

displayed. 6. Make the required changes in the desired fields. 7. Click the SAVE icon to confirm the changes.

Note: You can update more than one record at a time and save the changes together. However, you cannot update the status of a rectification order.

Task

Deleting Rectification Orders

To delete a rectification order:


displayed. 3. Click the ENT QRY icon to enter the query mode. 4. Type the PAN in the PAN field. 5. Click the EXEC icon to execute the query. The results of the query are

displayed. 6. Click the DEL icon to delete the rectification order.

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7. Click the SAVE icon. 8. Click the EXIT icon to close the screen.

CYU

Q1. What is the next step after an AO receives an application for rectification from the assessee? (There is only one correct answer.)

a. A receipt for the application and a notice for the hearing are sent to the assessee.

b. A rectification order is passed u/s 154 or 155. c. The details of the rectification application are entered in AST.

Q2. How can you view all the available rectification orders in AST? (There is only one correct answer.)

a. By clicking the ENT QRY icon without entering values in any of the fields b. By clicking the EXEC icon without entering values in any of the fields c. By clicking the Open Records icon without entering values in any of the

fields

Summary


The rectification application filed by the assessee and the rectification order passed in response to the application are entered in AST.

The rectification process is initiated when: o An AO receives a rectification application from the assessee o An AO, CIT Admin, or CIT Appeal adds a rectification application suo

moto

After the hearing, a rectification order is passed u/s 154 or 155 and the details of the order are entered in AST. However, the actual text of the rectification order is not entered in AST.

Rectification applications are entered, updated, or deleted from the Rectification Application screen.

The Receipt button, which allows users to generate a receipt for the rectification application, is enabled only for AOs.

Rectification orders are entered, updated, or deleted from the Rectification Order screen.

Answers

Q1: c; Q2: b

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Duration

Topic 19: Maintaining Adjustments/Additions

25 minutes

Concept

An Overview

In this topic, you will learn about adjustments and additions in AST.


Make modifications u/s 154.

View previous modifications.

Copy from previous modifications.

Concept

What It Is?

Adjustments are changes made in the existing income statement after processing of returns due to errors and omissions. There maybe prima-facie errors that become apparent from the records. For example, there could be some appropriate information missing, misquoted, or incorrectly entered in AST. These errors may lead to incorrect calculation of income or omission of tax credit. To fix these errors, these returns require changes in the income statement that must also be updated in AST.

There may also be rectifications or additions in the income statement in other situations:

On assessee’s appeal: An assessee may make an appeal for rectification or send a reference to the administrative authority. Depending upon the hearing, income or tax payment may be modified. Such rectifications need to be updated in the income statement in AST before passing the order.

During scrutiny of cases: Based on the scrutiny proceedings, the income statement for the assessee may be modified. Such modifications need to be updated in the income statement in AST before passing the order.

Task

Making Modifications

You may need to make necessary rectifications u/s 154 or additions u/s 143(3). These modifications are made in AST on the Adjustments/Additions screen.

To make modifications to an income statement:

1. Click the Rectification menu on the AST menu bar. 2. Select the Rectification Order option. The Rectification Order screen is

displayed. 3. Click the ENT QRY icon to enter a query. 4. Type the PAN in the PAN field. 5. Type the assessment year in the Asmt. Yr field. 6. Click the drop-down arrow for the Status field and select the appropriate

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option from the available list. 7. Click the EXEC icon to execute the query. The results of the query are

displayed. 8. Click the Adjustments Demand button to view the modifications. The

Demand Processing screen is displayed. 9. Select the Exist radio button to indicate that modifications will be made.

Note: The Demand Processing screen shows the Do not Exist radio button as selected when no modifications exist.

10. Click the Adjustments/Additions button to make modifications. The Adjustments/Additions screen is displayed with all the income details from the Return Acknowledgement Sheet.

Fig: The Adjustments/Additions screen

11. Make necessary modifications by overwriting the values in the appropriate fields.

12. Click the SAVE icon to confirm the changes. 13. Click the EXIT icon.

Task

Viewing Previous Modifications

While making rectifications or additions to the income statement of an assessee, you can also view and copy the income details from the previous

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modifications.

To view previous modifications, click View Prev. Adjustments button on the Adjustments/Additions screen.

If modifying a previous order, the details of the previous modifications are displayed. If there are no previous modifications, only the return details are displayed and the View Prev. Adjustments button is disabled.

Task

Copying Previous Modifications

To copy the income details from the previous modifications, click Copy Prev. Adjustments button on the Adjustments/Additions screen.

You can copy details only if there are any previous modifications. The Copy Prev. Adjustments button is disabled if there are no previous modifications.

CYU

Q1. Why do you need to make adjustments to an income statement in AST? (There is only one correct answer.)

a. To fix prima-facie errors that may lead to incorrect calculation of income b. To complete the assessment of returns u/s 143(1) c. To make rectifications in the income statement

Q2. On which of the following screens can you make modifications? (There is only one correct answer.)

a. The Adjustments/Additions screen b. The Demand Processing screen c. The Adjustments_Demand screen

Summary


AST allows you to make rectifications and additions to correct the income statement and remove data entry errors.

Adjustments can be made after the processing of returns to fix prima-facie errors.

Rectifications and additions can be made: o On assessee’s appeal o During scrutiny of cases

Any modification in the income statement can be made only before passing the order.

You can update rectifications and additions from the Demand Processing screen.

You can copy and view income details from the previous modifications on the Adjustments/Additions screen.

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Answers

Q1: a; Q2: a

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Duration

Topic 20: Penalty Order and Demand

25 minutes

Concept

An Overview

In this topic, you will learn how to maintain penalty order details and compute penalty demand.


Add a penalty order.

Compute penalty demand.

View penalty payment details.

Access the Refund Details screen.

Select the different proceeding outputs.

Update penalty order details.

Delete penalty demand.

Concept

What Is It?

Penalties are levied over and above the tax or interest payable by the assessee. Penalties may be imposed on the assessee for the following reasons:

Nonpayment of income tax

Failure to get the accounts audited

Concealment of income

Failure to maintain books of accounts

Some penalties are of a technical nature, such as the failure to mention PAN by the assessee, which may not be related to the assessment proceedings. Each penalty proceeding for an assessment year results in a separate penalty demand.

Penalty orders and notices are created manually and are not stored in the ITD application. However, penalty order details such as section, date of passing of order, and penalty amount are stored in the ITD application. This helps in tracking and recording the variations in these demands due to appeals, rectifications, and revisions

Task

Adding a Penalty Order

AST allows you to add penalty orders from the Penalty Proceeding screen. Here, you can record penalty order details such as date of passing order and the section under which the orders have been passed.

To add a penalty order:

1. Click the Others menu on the AST menu bar.

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Fig: The Others menu

2. Select the Penalties option. 3. Select the Penalty Proceeding option. The Penalty Proceeding screen

is displayed.

Fig: The Penalty Proceeding screen

4. Type the PAN and press the Tab key. The name and address of the assessee and the AO code are populated automatically.

5. Type the assessment year in the Asmt. Yr field and press the Tab key. 6. Click the LoV icon for the Section and r/w fields and select an

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appropriate section from the available list. 7. Type the appropriate dates in the Dt. Initiated and Due Date fields. 8. Type any additional information in the Comments field. 9. Click the drop-down arrow for the Type field and select the appropriate

option to indicate the proceeding during which the penalty order is being passed.

10. Click the LoV icon for the Start Date and Section fields and select an appropriate value from the available list.

11. Type the appropriate dates in the Dt. Order Passed and Date of Service to Assessee fields.

12. Click the LoV icon for the Section and r/w fields and select an appropriate value from the list.

13. Type the appropriate values in the Dt. Of Last Hearing and No. of Hearing fields.


Task

Viewing Penalty Payment Details

To view the penalty payment details:

1. Click the Demand button on the Penalty Proceeding screen. The Penalty Demand screen is displayed.

2. Click the Details button. The Penalty Payments screen is displayed.

Task

Assessing the Refund Details Screen

To navigate to the Refund Details screen:

1. Click the ENT QRY icon on the Penalty Proceeding screen. 2. Type the PAN in the Penalty Proceeding section of the screen. 3. Click the EXEC icon. The details of the penalty order are displayed. 4. Click the Demand button. The Penalty Demand screen is displayed. 5. Click the Refund Details button. The Refund Details screen is displayed.

On this screen, you can specify the assessee’s bank details and communication address.

Task

Selecting Proceeding Outputs

After computing the net penalty demand, you can select and print different proceeding outputs, such as challans, demand notices, and refund vouchers.

To select proceeding outputs:

1. Click the Print Results button on the Penalty Demand screen. The Order Dates dialog box is displayed.

Note: All the fields in the Order Dates dialog box show default values. You can modify them to appropriate values.

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2. Click the OK button. The Current Demand dialog box is displayed. 3. Click the Yes button. The Print Information dialog box is displayed. 4. Click the OK button to pass the current order and print the outputs.

Note: Once the order is passed, you cannot make any changes in the corresponding order and penalty demand. If changes are needed, the rectification process will have to be initiated.

Task

Updating Penalty Order Details

To view the penalty payment details: 1. Click the ENT QRY icon on the Penalty Proceeding screen. 2. Type the PAN in the Penalty Proceeding section of the screen. 3. Click the EXEC icon. The screen displays the details of the penalty order

for the PAN. 4. Make the necessary updates in the Penalty Order section of the screen. 5. Click the SAVE icon.

Task

Deleting Penalty Demand

To delete the penalty demand details:

1. Click the ENT QRY icon on the Penalty Proceeding screen. 2. Type the PAN in the Penalty Proceeding section of the screen. 3. Click the EXEC icon. The details of the penalty order are displayed. 4. Click the Demand button. The Penalty Demand screen is displayed. 5. Click the Penalty Amount field. 6. Click the DEL icon. A message is displayed prompting to confirm the

deletion. 7. Click the OK button to confirm. 8. Click the SAVE icon to save the changes.

CYU

Q1. Which of the following reasons can result in a penalty? (There is more than one correct answer.)

a. Failure to furnish reference documents b. Nonpayment of income tax c. Incorrect computation of tax d. Failure to maintain books of accounts

Q2. Which of the following tasks can you perform on the Penalty Demand screen? (There is more than one correct answer.)

a. Compute the notice period. b. Compute the net penalty demand. c. Compute the interest u/s 220(2) and the penalty amount. d. Record the penalty order details and the penalty amount. e. Enter applicable interest.

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Summary


AST allows you to enter the details of penalty orders, compute penalty demand, and view the details of payments and refunds.

A penalty may be imposed on the assessee due to: o Nonpayment of income tax o Failure to get the accounts audited o Concealment of income o Failure to maintain books of accounts

While computing the net penalty demand on the Penalty Demand screen, you can make changes in the interest, if required.

On the Penalty Demand screen, you can compute the net penalty demand and the refund details.

After computing the penalty demand, you can select and print different proceeding outputs, such as challans, demand notices, and refund vouchers.

Each penalty proceeding for an assessment year results in a separate penalty demand.

Once the order is passed, you cannot make any changes in the corresponding order and penalty demand. If changes are needed, the rectification process will have to be initiated.

Answers

Q1: b, d; Q2: b, e

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Duration

Practice Session

45 minutes

Practice

Scenario: Perform the following tasks: 1. Create a rectification application for the rectification requested by the

assessee. 2. Create a rectification order. 3. Enter the details of penalty proceedings against the assessee for the

assessment year 2007-08. 4. Compute penalty demand for the assessee.



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Duration

Topic 21: Scrutiny u/s 143(3)

40 minutes

Concept

An Overview

AST assists the users in completing the assessment of cases selected for scrutiny. In this topic, you will learn the steps for maintaining scrutiny cases.


Describe how the Computer Aided Scrutiny Selection (CASS) system selects cases for scrutiny.

View the list of scrutiny cases.

Select a case for scrutiny.

Prepare a notice for the assessee.

Issue the notice to the assessee.

View the details for scrutiny.

Print the scrutiny order.

Concept

CASS

The ITD application now uses the CASS system for the selection of cases for scrutiny.

The benefits of using the CASS system are:

It is a fully automated system, which prevents the chances of missing out any potential cases.

It is based on parameters that are set dynamically, which helps cater to the changing business rules and the Central Board of Direct Taxes (CBDT) guidelines.

It is fully integrated with AST.

It helps to generate the list of selected cases at any time during the year.

Concept

The Workflow

The CASS system runs the parameters defined by the CBDT for scrutiny on the list of PANs for the entire country. The cases for scrutiny are selected based on these parameters. The list of selected cases is then pushed to the respective AOs for action. The AOs view the list and select cases for scrutiny in the system.

After selecting a case for scrutiny u/s 143(3) from the list, the AOs:

Prepare a notice for the assessee.

Issue notice to the assessee.

Conduct assessment u/s 143(3).

Print the scrutiny order.

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Task

Viewing the List of Cases for Scrutiny

You can view the list of cases for scrutiny from the List of Cases Selected for Scrutiny screen by specifying the scope date range. For the date range after 2007, the cycle number is also needed.

To view the list of cases selected for scrutiny:

1. Click the CASS menu on the AST menu bar.

Fig: The CASS menu

2. Select the List of cases selected for scrutiny option. The List of Cases Selected for Scrutiny screen is displayed.

Fig: The List of Cass Selected for Scrutiny screen

3. Click the LoV icon for the Scope From Date field. 4. Select the appropriate date range from the list and click the OK

button. The date range is entered in the Scope From Date and To Date fields.

5. Type the cycle number in the Cycle No field.

Note: The cycle number needs to be entered only for date range after 2007.

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6. Click the EXEC icon. The list of cases is displayed with the assessee details and the category under which the case has been selected for scrutiny.

Fig: The list of cases selected for scrutiny

7. Click the Show Pans Under Specific Reason button. The Pans Under Scrutiny dialog box is displayed with the list of scope IDs and descriptions. You can click the Show Pans button against a scope to view the list of PANs covered under that scope.

Fig: The Pans Under Scrutiny screen

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8. Click the Close button to return to the list of scrutiny cases. 9. Click the EXIT icon to close the screen.

Task

Selecting a Case for Scrutiny

After viewing the list of cases for scrutiny, you can select a specific case and initiate proceedings.

To select a case for scrutiny:

1. Click the Asmt menu on the AST menu bar.

Fig: The Asmt menu

2. Select the Select Cases for Assessment option. The Selection for Scrutiny Cases screen is displayed.

Fig: The Selection of Scrutiny Cases screen

3. Type the appropriate value in the PAN and the Asmt. Year fields and press the Tab key. The assessee’s name is populated

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automatically. 4. Click the LoV icon for the Section and r/w Section fields to view

a list of valid sections. 5. Select the appropriate option from the available list and click the

OK button. 6. Click the drop-down arrow for the Status field and select the

Selected for scrutiny option. 7. Click the SAVE icon. The case is selected for scrutiny. 8. Click the EXIT icon.

Task

Preparing a Notice for Assessee

After selecting a case, you can prepare a notice for the assessee in AST.

To prepare a notice for the assessee: 1. Click the Asmt menu on the AST menu bar. 2. Select the Notices u/s 143(2) option. The Notices u/s 143(2) screen is

displayed.

Fig: The Notices u/s 143(2) screen

3. Click the ENT QRY icon. 4. Type the appropriate value in the PAN field. 5. Click the EXEC icon. The assessee’s name and assessment year for

which the notice is to be issued appears. 6. Type the appropriate values in the Date of Attending and the Time of

Attending fields. 7. Click the drop-down arrow for the Print? field and select the Yes option. 8. Click the SAVE icon. The notice for assessee is prepared.

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Task

Issuing a Notice to Assessee

After preparing the notice for the assessee, you can issue the notice by printing it. To issue a notice to assessee:

1. Click the Reports menu on the AST menu bar.

Fig: The Reports menu

2. Select the Notices option. 3. Select the Notice u/s 143(2) option. The Print Notice u/s 143(2) screen

is displayed with the AO code and the current date as the print date.

Fig: The Print Notice u/s 143(2) screen

4. Type the appropriate value in the PAN field. 5. Click the GEN icon. A message is displayed indicating that the generation

of the report is over. Note the ID displayed in the message to download and print the notice.

Note: The procedure for downloading, accessing, and printing the notice is similar to the procedure for reports.

6. Click the OK button. 7. Click the EXIT icon.

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Task

Assessment u/s 143(3)

After issuing the notice to the assessee, you can view the details of the selected case and complete the assessment u/s 143(3).

To complete the assessment of a case u/s 143(3):

1. Click the Asmt menu on the AST menu bar. 2. Select the Assessment Proceedings option. The Regular Assessment


Fig: The Regular Assessment screen

3. Click the ENT QRY icon. 4. Type the appropriate value in the PAN field. 5. Click the EXEC icon. The details of the case for example, the assessee’s

name, address, assessment year, and section, are displayed. The Status field shows ‘In Progress’ for the case.

6. Click the LoV icon for the Section and r/w fields to view a list of valid sections.

7. Select the appropriate option from the available list and click the OK button.

8. Click the SAVE icon. 9. Click the Adjustments & Demand button. The Demand Processing

screen is displayed. 10. Click the Adjustments/Additions button to make corrections to the return

details. The Adjustments/Additions screen is displayed.

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11. Select the Exist radio button for the Adjustments field. This indicates that an adjustment will be made.

12. Make corrections wherever necessary. 13. Click the SAVE icon to save the changes. 14. Click the EXIT icon. The Demand Processing screen is displayed. 15. Click the Compute button. The messages relevant for the assessee and

the return are displayed. 16. Click the OK button to close the messages. The screen displays the

demand/refund recomputed by AST based on the adjustments made. 17. Click the SAVE icon. 18. Click the Print Results button to complete the proceedings. The Order

Dates dialog box is displayed with the order details.

Fig: The Order Date dialog box

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19. Click the OK button to close the screen. The Demand Details dialog box is displayed with the details of the current and the previous demand.

Fig: The Demand Details Dialog box

20. Click the OK button to close the screen. The Print Information dialog box is displayed with the proceeding outputs relevant for the case selected.

21. Click the OK button to close the screen. 22. Click the EXIT icon. The Regular Assessment screen is displayed with

the status changed to Completed. 23. Click the EXIT icon.

Task

Printing a Scrutiny Order

After completing the assessment, you can print the scrutiny order. To print a scrutiny order:

1. Click the Reports menu on the AST menu bar. 2. Select the Proceeding Outputs option.

Fig: The Proceeding Outputs submenu in the Reports menu

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3. Select the Proceeding Report Form option. The Proceeding Reports Form screen is displayed.

Fig: The Proceeding Reports Form screen

4. Type the value in the PAN field. 5. Click the LoV icon for the Case Type field. 6. Select the appropriate option from the list and click the OK button. The

screen displays a list of all proceeding outputs applicable for that assessee.

7. Click the GEN icon. A message is displayed indicating that the outputs are printed. Note the ID displayed in the message to download and print the outputs. The procedure for downloading, accessing, and printing the outputs is similar to the procedure for reports.

CYU

Q1. What is the next step after viewing the list of cases for scrutiny? (There is only one correct answer.)

a. Prepare a notice u/s 143(3) for the assessee. b. Send the scrutiny order to the assessee. c. Select a case for scrutiny u/s 143(3).

Q2. Which of the following statements are true about the CASS system? (There is more than one correct answer.)

a. It helps to ensure the timely completion of scrutiny proceedings. b. It is used by the AO to generate the list of cases for scrutiny. c. It helps to prevent the chances of missing out any potential cases. d. It helps to select cases for scrutiny based on the parameters defined by

the CBDT.

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Summary


AST allows you to view the list of cases selected for scrutiny by the CASS system. In addition, it allows you to select cases, issue notices, complete proceedings, and print orders.

You can view the list of cases for scrutiny from the List of Cases Selected for Scrutiny screen in AST.

After viewing the list of cases for scrutiny, you can select a specific case and initiate proceedings.

You can prepare a notice for the assessee and issue the notice by printing it from AST.

You can view the details of the selected case, complete assessment u/s 143(3), and print the scrutiny order.

Answers

Q1: c; Q2: c, d

Notes

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Issuing Refunds

Duration

Topic 22: Issuing Refunds

20 minutes

Concept

An Overview

In this topic, you will learn about the tasks that you need to perform for refunds generated while processing a return u/s 143(1).


Allocate cheque book to AO.

Add refund voucher details.

Update refund voucher details.

Inquire on printed refund vouchers details.

Cancel cheques.

Maintain response for unpaid refunds.

Concept

What It Is?

With the refund banker scheme, all refunds generated after processing u/s 143(1) are now issued by the refund banker. You can only issue refund vouchers to the Department or for cases where proceedings have been done manually, such as the penalty cases or returns processed on TMS.

Issuing refund vouchers includes two steps: 1. Allocating cheque books 2. Adding refund voucher details

Task

Allocating Cheque Book to AO

Before printing refund vouchers, you need to allocate the cheque book to yourself. While allocating, you can specify the number of cheques you want in the cheque book, such as 10, 25, or 50.

To allocate cheque books:

1. Click the Others menu on the main AST window.

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2. Select the Chequebook Allocation option. The Allocating Cheques to AO window is displayed.

Fig: The Allocating Cheques to AO

3. Type the appropriate cheque book number in the Cheque Book No field.

4. Type the relevant details in the Cheque From and Cheque To fields. 5. Select the Greater than or equal to Rs 25000 option from the drop-

down menu for the Amount Flag field. 6. Select the Income Tax option from the drop-down menu for the Major

Head field. 7. Click the SAVE icon. 8. Click the EXIT icon.

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Task

Adding Refund Voucher Details

Once you have allocated the cheque book, you can add refund voucher details.

To add refund voucher details:

1. Click the Reports menu on the AST main screen. 2. Select the Proceeding Outputs option.

Fig: The Proceeding Outputs submenu in the Reports menu

3. Select the Refund Voucher option. The Refund Voucher screen is displayed.

Fig: The Refund Voucher screen

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4. Select the Regular or FBT radio button as the Refund Type. 5. Select the MICR or Non MICR radio button as the Cheque Type. 6. Select the Assessee option from the drop-down menu for the Payable

To field. 7. Select the Greater than or equal to Rs 25000 option from the drop-

down menu for the Amount field. 8. Select the Income Tax option from the drop-down menu for the Major

Head field. 9. Click the LoV icon for the Cheque Book field and select the option for

the cheque series you want to use. 10. Click the OK button. The number of cheques available in the Cheque

Series selected and the number of the starting and ending cheques in that series is populated automatically on the Refund Voucher screen.

11. Type the PAN and assessment year. Press the Tab key after each entry. The Verification Screen for Refund Cheque Series is displayed.

Fig: The Verification Screen for Refund Cheque Series screen

12. Type the starting and ending cheque number to indicate the number of cheques you want to print.

13. Select the appropriate Income Tax option from the drop-down menu for the Major Head field.

14. Click the OK button. A message is displayed prompting you to confirm if the stationery in the printer is new stationery.

Fig: Message for checking stationery for refund

15. Click the OK button. Click the GEN icon to print the refund. A message is displayed indicating that the generation of the report is over.

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16. Click the OK button. Another message is displayed informing the number of cheques printed.

Fig: Message showing the number of cheques printed

17. Click the OK button. Another message is displayed stating that the report is generated successfully.

18. Click the Yes button. The Refund Verification/Resetting screen is displayed with the details of the refund voucher, such as the PAN, assessment year, cheque number, date, refund amount, and status.

Fig: The Refund Verification/Resetting screen

19. Click the APPLY button. The refund voucher details disappear from the screen.

Task

Inquiring on Printed Refund Vouchers Details

To inquire on printed refund voucher details:


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2. Select the Refund Cheque Entry option. The Entry of Refund Cheque Number screen is displayed.

Fig: The Entry of Refund Cheque Number screen

3. Click the ENT QRY icon to query the printed refund voucher details. 4. Type the assessment year. 5. Click the EXEC icon. The details of all refund cheques issued for that

assessment year are displayed.

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Task

Updating Refund Voucher Details

AST allows you to update refund vouchers for adding details, such as the cheque number and date. However, you can only make changes to the refund vouchers that have been issued by you.

To update refund voucher details:

1. Click the Others menu on the main AST window. 2. Select the Refund Cheque Entry option. The Entry of Refund Cheque

Number screen is displayed. 3. Click the ENT QRY icon to query the refund voucher details. 4. Type the assessment year. 5. Click the EXEC icon to view the cheque details. 6. Type the appropriate details in the Cheque No. and Cheque Date fields

for the cheques you want to update. 7. Click the SAVE icon.

Task

Canceling Cheques

AOs can cancel cheques when the time limit of a refund has expired or the refund has been lost. Once a cheque is cancelled, AOs can issue another cheque for that assessee depending on the reason indicated.

To cancel cheques:

1. Click the Others menu on the main AST window. 2. Select the Cancel Cheque option. The Cancel Cheque screen is

displayed.

Fig: The Cancel Cheque screen

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3. Click the ENT QRY icon to query the cheque details. 4. Type the PAN and the assessment year. 5. Click the EXEC icon to view the cheque details. 6. Select the Cancel Cheque checkbox. 7. Select the appropriate option from the drop-down menu for the Reason

of Cancellation field. 8. Type your comments in the Remarks field. 9. Click the SAVE icon. A message is displayed asking to confirm the

cancellation. 10. Click the OK button to confirm. Another message is displayed indicating

that the records are saved successfully. 11. Click the OK button to continue. The cheque is cancelled and its details

disappear from the screen.

Task

Maintaining Response for Unpaid Refunds

The refund banker may not be able to issue refunds in cases where the account information or communication address is incorrect. The refund will remain unpaid in such cases till the issue is resolved.

You need to maintain the response for such unpaid refunds. As soon as a case is identified, you need to send a communication to the assessee asking for the correct and complete details. Once the details are received from the assessee, you need to update the details in the system and maintain the status of the response.

To maintain response for unpaid refunds: 1. Click the Others menu on the main AST window. 2. Select the Maintain Response option. The RESPONSE FROM

ASSESSEE screen is displayed.

Fig: The RESPONSE FROM ASSESSEE screen

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3. Click the EXEC icon to view the assessee details. 4. Select the Received option from the drop-down menu for the Response

Status field. 5. Click the SAVE icon.

CYU

Q1. When do you add refund voucher details? (There is only one correct answer.)

a. After allocating cheque book b. Before allocating cheque book c. While maintaining response for unpaid refunds

Q2. Which of the following details can you update for a refund voucher? (There is more than one correct answer.)

a. Cheque number b. Refund amount c. Assessment year d. Cheque date

Summary


With the refund banker scheme, all refunds generated after processing u/s 143(1) are issued by the refund banker. You can only issue refund vouchers to the Department or for cases where proceedings have been done manually, such as the penalty cases or returns processed on TMS.

Issuing refund vouchers includes two steps:

1. Allocating cheque books 2. Adding refund voucher details

AST allows you to update the cheque number and the date in refund vouchers.

You can cancel cheques when the time limit of a refund has expired or the refund has been lost.

The refund banker may not be able to issue refunds in cases where the account information or communication address is incorrect. The refund remains unpaid in such cases till the issue is resolved. You need to maintain the response for such unpaid refunds.

Answers

Q1: a; Q2: a, d

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Duration

Practice Session

30 minutes

Practice

Scenario: Perform the following tasks: 1. Allocate a cheque book. 2. Inquire the details of printed refund vouchers for previous assessment

years. 3. Check the status of unpaid refunds.

Inputs: Ensure that you have the AO code allocated to you by the trainer.


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Duration

Topic 23: Refund Banker

20 minutes

Concept

An Overview

Refund Banker is a new scheme that helps ITD send refunds to assessees faster. In this topic, you will learn about Refund Banker, its workflow, features, advantages, and success.


Understand Refund Banker.

Explain the Refund Banker workflow.

Describe the features and advantages of Refund Banker.

Describe the success of Refund Banker.

Concept

An Introduction

Refund Banker is a scheme wherein a scheduled bank is authorized to issue refund instruments to the assessees on behalf of ITD. Currently, State Bank of India (SBI), National Securities Depository Ltd. (NSDL), and India Post are the business partners for the Refund Banker scheme.

Under the scheme, refunds are sent electronically or by paper as indicated by assessees in the ITR form. The scheme facilitates faster tax refunds and direct credit to the assessees’ bank accounts.

For paper refund, SBI will print cheques or demand drafts and send it by speed post to assessees.

For electronic refund, assessees need to provide their account number along with the MICR code in the ITR form. The amount will be refunded in three ways:

Direct credit in the bank account of the assessee, in case the assessee has an account with SBI

National Electronic Fund Transfer (NEFT)

Electronic Clearing Service (ECS)

Additionally, for electronic refund, a refund intimation is sent to the assessee by post.

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Concept

The Workflow

Fig: The Refund Banker workflow

The Refund Banker workflow is initiated when AOs process returns and the refunds due to the assessees are calculated at RCCs. This information is passed from RCCs to NCC.

At NCC, the auto-generated refund files are collated on a daily basis. These refunds are validated at NCC, and the refund files are sent to SBI on the same day.

At SBI, the electronic and paper refunds are processed within the defined timeline. Direct credit takes one day; whereas, NEFT and ECS take two working days based on the settlement date by RBI. For paper refunds, cheques are printed and dispatched by speed post within three working days. The delivery status of paper refunds are updated on the India Post Web site.

SBI will daily update NSDL on the status of refunds through a defined e-format. NSDL will display the refund status on the Tax Information Network (TIN) Web site and upload the data to ITD daily.

NCC receives the data from NDSL and sends it to RCCs for AOs. In case some of the refunds are unpaid, then the reasons are shown to the AOs for correction. AOs will correct the errors and authorize refunds to assessees. This information is once again passed from RCCs to NCC and the same workflow is followed.

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Concept

The Features

The following are the features of the Refund Banker scheme:

Assessees can check the refund status on the TIN Web site (www.tin-nsdl.com).

The speed post reference number can be used to track the refund cheque from the India Post Web site (www.indiapost.gov.in).

Paper refunds are payable at par at all networked branches of SBI.

Frequently Asked Questions (FAQ) about Refund Banker are available on the TIN Web site.

NEFT and direct credit facilities are available to ensure faster refunds.

The refund status and reasons for non-payment are updated in AST.

An SBI call centre with Toll Free Number (1800-4259760) is available to assessees.

Concept

The Advantages

The following are the advantages of Refund Banker to citizens:

A system-driven process for determination, generation, issue, dispatch, and credit of refunds

Web-based tracking of refund status with reasons for return of refunds

Elimination of visit to any Income Tax Office or authority for refunds

Faster Turn Around Time (TAT)

Incentives for the selection of electronic refund

Refund Banker helps ITD by:

Eliminating frauds

Creating a database of live and active bank accounts and updated addresses for other taxpayer services (For example, sending Annual Tax Credit Statements, issue of notices/letters, and so on.)

Channeling the time and energy of the department personnel towards other core activities

Saving the interest liability of the department

Concept

The Success Story

The average TAT* for the month of December, 2008:

Mode Delhi

Patna

Bangalore Chennai Kolkata Mumbai Total

Paper 16.69

18.68 20.96 11.38 15.94 9.48 16.21

Electronic 1.45 2.41 1.00 1.21 1.35 1.32 1.30

*From date of sending the record to the date of credit or date of encashment

http://www.tin-nsdl.com

http://www.indiapost.gov.in

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The percentage of refunds issued through Refund Banker as of 18th March, 2009:

Financial Year

No. of refunds issued

No. of refunds issued through Refund Banker

Refund issued through Refund Banker (%)

06-07 4456828 26700 0.60%

07-08 4806269 387209 8.06%

08-09 3672913 791175 21.54%

Note that there is a steady increase in the number of refunds issued through Refund Banker.

The percentage of increase in the use of electronic refund as of 18th March, 2009:

Financial Year

Paper Refunds Electronic Refunds

Total Refunds

Increase in Electronic Refunds (%)

06-07 20220 6480 26700 24.27%

07-08 245673 141536 387209 36.55%

08-09 367259 423916 791175 55.55%

Note that there is a steady increase in the use of electronic refund. Currently, it is more than paper refund.

CYU

Q1. Apart from SBI and India Post, who is the business partner for the Refund Banker scheme? (There is only one correct answer.)

a. RBI b. TIN c. NSDL

Q2. When are electronic refunds sent to assessees through direct credit? (There is only one correct answer.)

a. When the assessees need faster refunds b. When the assessees have an account with SBI c. When the assessees specify direct credit as the preferred option

Q3. Where is the delivery status of paper refunds updated? (There is only one correct answer.)

a. ITD Web site b. TIN Web site c. India Post Web site

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Summary


SBI, NSDL, and India Post are the business partners for the Refund Banker scheme.

Refunds are sent electronically or by paper as indicated by assessees in the ITR form.

Assessees can check the refund status on the TIN Web site.

The refund status and reasons for non-payment are updated in AST.

Refund Banker helps ITD in eliminating frauds and creating a database of live and active bank accounts and updated addresses for other taxpayer services.

Refund Banker also helps in saving the interest liability of ITD and channeling the time and energy of the department personnel towards revenue generating activities.

Answers

Q1: c; Q2: b; Q3: c

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Proceeding Outputs

Duration

Topic 24: Proceeding Outputs and Queries

20 minutes

Concept

An Overview

In this topic, you will learn about proceeding outputs and executing queries in AST.


Reprint proceeding outputs.

Query the status of time-barred proceedings.

Query assessee details.

Task

Reprinting Proceeding Outputs

AST allows you to reprint the proceeding outputs. You can print one or all of the following outputs:

Intimation sheet

Challan

Demand notice

Calculation sheet

Note: You cannot reprint a refund voucher.

To reprint a proceeding output:

1. Select the Reports menu on the main AST window.


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2. Select the Reprints option. The Reprint screen is displayed.

Fig: The Reprint screen

3. Type the PAN and assessment year. Press the Tab key after each entry. The assessee’s name is populated automatically.

4. Select the appropriate option from the drop-down menu for the Demand Type field.

5. Click the EXEC icon to view the demand details of the assessee. 6. Click the demand for which you want to reprint the output and then click

the Intimation Sheet button on the screen. A message indicating that the intimation sheet will be reprinted for the selected demand is displayed.

Fig: The message for reprinting of proceeding outputs

7. Click the OK button. The intimation sheet is generated and saved in the C:\ITDSPOOL folder.

8. Open the intimation sheet and print it.

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Concept

Executing Queries

AST provides multiple options for query. You can enter a PAN to view the details of the returns, orders, and proceedings for that PAN. Similarly, you can query on an assessment year or form type to view all the returns submitted for that year or form type.

This topic will cover the queries on time-barred proceedings and the assessee details.

Task

Querying on Proceedings

AST allows you to view the list of cases and determine their status from the Time Barring Queries option in the Others menu.

For example, you can view the list of cases u/s 143(1) that will be due within a time range. The results of this query display the PAN, assessee name, acknowledgement number, bundle number, assessment year, return income, and due date. The results of the query help to identify and take actions on the proceedings that may become time barred.

To query on the status of proceedings:



2. Select the Time Barring Queries option. 3. Select the Processing u/s 143(1) option. The TB Query Assessment

Proceedings screen is displayed.

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Fig: The TB Query Assessment Proceedings screen

4. Click the LoV icon for the AO Code field and select the appropriate code from the list.

5. Click the OK button. 6. Type the appropriate time range in the Due Date From field. 7. Type the assessment year in the Asmt Year field.

Note: Under the Proceeding Subtype section, the Proceeding Exists option is selected by default.

8. Click the EXEC icon. The assessment proceeding details are displayed for cases for which proceedings exist.

9. Select the No Proceedings exist but return is filed option. 10. Click the EXEC icon. The screen displays the list of cases for which return

has been filed but no proceedings exist. These cases will become time barred after the Due Date.

Task

Querying Assessee Details

The Query menu in AST has the following options for viewing assessee details:

The Assessee Profile option allows you to view the details of all the proceedings for an assessee in the specified time range.

The Assessee Income Details option allows you to view the list of assessees, who have a specific residential and PAN status and have

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filed their income in a particular manner. For example, you can query to view the list of assessees with the individual status and agricultural income.

The Assessee Details option allows you to view the list of assessees who have filed their returns within a time range. You can also specify the assessee status and range of age as the query parameter.

To query assessee income details:

1. Click the Query menu on the main AST window. 2. Select the Assessee Income Details option. The QUERY ASSESSEE

INCOME DETAILS screen is displayed.

Fig: The QUERY ASSESSEE INCOME DETAILS screen

3. Type the assessment year and financial year in the Asmt Year and Financial Year fields, respectively.

4. Select appropriate options from the Status, Residence in India, and Agriculture Income drop-down lists.

5. Click the EXEC icon. The assessee income details within the specified criteria are displayed.

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CYU

Q1. Identify the proceeding outputs that AST allows you to reprint. (There is more than one correct answer.)

a. Intimation sheet b. Challan c. Refund voucher d. Calculation sheet

Q2. Which of the following assessee details CANNOT be checked from the Query menu? (There is only one correct answer.)

a. Return income filed by the assessee b. Communication address of the assessee c. All proceedings for the assessee

Summary


AST allows you to reprint proceeding outputs. In addition, it provides multiple options for query.

You can print one or all of the following proceeding outputs: o Intimation sheet o Challan o Demand notice o Calculation sheet

You cannot print a refund voucher.

The Query menu in AST provides options to query assessee details, such as the profile, return, and income.

The Time Barring Queries option in the Others menu provides various options to check the status of proceedings that are time barred.

Answers

Q1: a, b, d; Q2: b

Notes

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Duration

Topic 25: Date of Service


Concept

An Overview

The AST module allows you to maintain the date of service. In this topic, you will learn the steps for maintaining the date of service.


Inquire the date of service.

Update the date of service.

Concept

What It Is?

A date of service is the date when the order or notice is served to the assessee. This date is important because any delay from the assessee’s end in responding to the order is calculated based on the date of service.

Fig: The concept of date of service

When you issue an order, the system calculates the date of service automatically as five days after the date of passing the order. The period of five days is added to take care of the time to deliver the order to the assessee by post.

There could be a situation when the order is delivered to the assessee by hand. In such a situation, you may want to change the date of service. This date can be modified only by the authority that passes the order.

To change the date of service, you need to inquire it and then update it. After you change the date of service, the updated date is used for the calculation of

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interest u/s 220.

Task

Inquiring the Date of Service

You can inquire the date of service from the Modification of Date of Service screen.

To inquire the date of service:



2. Select the Date of Service Modification option. The Modification of Date of Service screen is displayed.

Fig: The Modification of Date of Service screen

3. Click the ENT QRY icon.

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4. Specify the selection criteria, such as the PAN, assessment year, and type of demand. Press the Tab key after each entry.

5. Click the EXEC icon to view the results of the query. The date of service along with the others details is displayed.

Task

Updating the Date of Service

To update the date of service:

1. Click the ENT QRY icon on the Modification of Date of Service screen.

2. Specify the selection criteria, such as the PAN, assessment year, and type of demand. Press the Tab key after each entry.

3. Click the EXEC icon to view the results of the query. The date of service along with the others details is displayed.

4. Type a valid date in the Date of Service field to overwrite the existing value.

5. Click the SAVE icon to confirm the changes made. A message is displayed indicating that the modified date will be posted in IRLA.

6. Click the OK button to confirm the change. This modifies the date of service for the order and updates the details in IRLA.

CYU

Q1. The date of service is entered in the system while_________. (There is only one correct answer.)

a. Passing the order b. Specifying the selection criteria c. Executing the query

Q2. On which screen can you update the date of service for an order? (There is only one correct answer.)

a. Date of Service Modification b. Updation of Date of Service c. Modification of Date of Service

Q3. What is the result of changing the date of service for a notice? (There is only one correct answer.)

a. The notice will be delivered on the changed date. b. The changed date will be used for the calculation of interest. c. The changed date will be used for the next proceeding. d. The notice will be printed on the changed date.

Summary


The AST module allows you to maintain the date of service.

The date of service is the date when the order is served to the assessee.

The date of service is important because any delay from the assessee’s

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end in responding to the order is calculated based on the date of service.

When you issue an order, the system calculates the date of service automatically as five days after the date of passing the order.

The date of service can be modified only by the authority that passes the order.

You can update the date of service from the Modification of Date of Service screen.

The updated date of service is used for the calculation of interest u/s 220.

Answers

Q1: a; Q2: c; Q3: b

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Giving Effect to Orders

Duration

Topic 26: Give Effect to Orders


Concept

An Overview

AST allows AOs to give effect to the orders passed by the higher authorities. In this topic, you will learn the steps for adding, inquiring, updating, and deleting give effect orders.


Add give effect orders.

Inquire give effect orders.

Update give effect orders.

Delete give effect orders.

Concept

What It Is?

During assessment proceedings, the CIT Admin receives orders from various authorities such as the CIT Appeal, Income Tax Appellate Tribunal (ITAT), High Court (HC), Supreme Court (SC), and Settlement Commission. All such orders along with the orders passed by the CIT Admin are allocated to an AO for processing. The AO selects these orders to give effect.

Fig: The workflow for giving effect to orders

The AO enters the adjustments in accordance with these orders. The system then recalculates the tax and interest liability of the assessee and generates the required outputs such as the demand notice, challan or refund voucher, and calculation sheet.

The AO can give effect to orders online if all processing and orders have been done on the application. All data must be present on the system. If all the

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required data is not available on the system, effect is given to external orders.

AOs can give effect to all orders except for the ones passed by themselves in RCC.

Task

Adding a Give Effect Order

After receiving the orders from the higher authorities, AOs can add give effect orders by navigating to the Give Effect Order screen.

To give effect to an order:

1. Click the Give Effect menu on the main AST window.

Fig: The Give Effect menu

2. Select the Give Effect to Orders option. The Give Effect Order screen is displayed.

Fig: The Give Effect Order screen

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3. Type the information in the PAN field and press the Tab key. Based on the specified PAN, the details in the Concerned AO, Name, and Address fields are populated automatically.

4. Type the year in the Asmt. Year field. 5. Click the LoV icon for the Section and r/w fields. The list of the

valid section and read with section combination is displayed. 6. Select the appropriate option from the available list. 7. Click the OK button to continue.

Note: The Status field is populated automatically, and the Text field is optional.

8. Type the information in the Text field. 9. Click the Type drop-down menu and select the type of order for

giving effect. 10. Click the LoV icon for the Date of Order, Section, and Date

Received fields and select the appropriate option from the available list.

11. Click the OK button to continue. 12. Click the SAVE icon to confirm the changes made. 13. Click the Adjustments Demand button to make the modifications,

as required, in the order. The Demand Processing screen is displayed.

Fig: The Demand Processing screen

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14. Click the Compute button to compute the tax liability. 15. Click the Adjustments/Additions button to make adjustments.

The Adjustments/Additions screen is displayed.


16. Select the Exist radio button to indicate that an adjustment will be made.

17. Make the necessary changes. 18. Click the SAVE icon to confirm the changes made. Information or

warning messages may be displayed as appropriate in the case. 19. Click the OK button to continue. The Message List window is

displayed. 20. Click the OK button to continue. A message is displayed

indicating that the return is saved successfully. 21. Click the OK button to continue. 22. Click the EXIT icon to close the Adjustments/Additions screen. 23. Click the EXIT icon to close the Demand Processing screen.

A message is displayed at the bottom of the Give Effect Order screen, indicating that records have been applied and saved.

24. Click the EXIT icon to close the Give Effect Order screen.

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Task

Inquiring a Give Effect Order

To inquire a give effect order:

1. Click the ENT QRY icon on the Give Effect Order screen. 2. Specify the selection criteria, such as the PAN, assessment year,

and section. 3. Click the EXEC icon to view the results of the query.

Task

Updating a Give Effect Order

To update a give effect order:

1. Click the ENT QRY icon on the Give Effect Order screen. 2. Specify the selection criteria. 3. Click the EXEC icon to view the results of the query. 4. Click the LoV icon for the Section and r/w fields. The list of the

valid section and read with section combination is displayed. 5. Select the new value from the available list to overwrite the

existing value. 6. Click the OK button to continue.

Note: You can make changes in the Text field but not in the PAN, Asmt. Year, Date Order Passed, and Status fields. Moreover, you cannot change the order to which an effect has been given. To change these details, delete the current give effect order and re-enter it.

7. Click the SAVE icon to confirm the changes made.

Task

Deleting a Give Effect Order

If you want to update any critical information such as the PAN, assessment year, or the order to which the effect has been given, you need to delete the current give effect order and add a new one.

To delete a give effect order:

1. Click the ENT QRY icon on the Give Effect Order screen. 2. Specify the selection criteria. 3. Click the EXEC icon to view the results of the query. 4. Click in the PAN field to select the give effect order. 5. Click the DEL icon. A message is displayed asking if you really

want to delete the record. 6. Click the OK button to continue. 7. Click the SAVE icon to confirm the changes made.

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CYU

Q1. What happens after the AO enters the adjustments in accordance with the various orders? (There is only one correct answer.)

a. The system automatically generates a report and sends it to the AO for updation.

b. The system sends an auto-generated e-mail to the AO, indicating that the case is approved.

c. The system recalculates the tax and interest liability of the assessee and generates the required outputs.

Q2. Which of the following fields can you modify while updating a give effect order? (There is more than one correct answer.)

a. Section b. PAN c. Status d. Asmt. Year e. Text

Summary


AST allows AOs to give effect to the orders passed by the higher authorities.

The orders received by the CIT Admin from various authorities such as the CIT Appeal, ITAT, HC, SC, and Settlement Commission are allocated to an AO for processing.

The AO can select such orders to give effect.

The AO enters the adjustments in accordance with these orders. The system then recalculates the tax and interest liability of the assessee and generates the required outputs.


If you want to update any critical information such as the PAN and assessment year, you need to delete the current give effect order and add a new one.

Answers

Q1: c; Q2: a, e

Notes

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Duration

Topic 27: Give Effect to External Orders


Concept

An Overview

AST allows AOs to give effect to the external orders passed by the higher authorities. In this topic, you will learn the steps for the various tasks that are performed in relation to giving effect to external orders.


Add give effect for external orders.

Inquire give effect for external orders.

Update give effect for external orders.

Delete give effect for external orders.

Inquire on the type of order selected.

Insert or update the receiving date for orders.

Concept

What It Is?

During assessment proceedings, the orders received by the CIT Admin (before the date of computerization) from various authorities such as the CIT Appeal, Income Tax Appellate Tribunal (ITAT), High Court (HC), Supreme Court (SC), and Settlement Commission are allocated to an AO for processing. In addition, the orders passed by the CIT Admin are also allocated to the AO.

The AO selects these orders to give effect, and no validation is done at this stage.


Task

Adding a Give Effect to External Order

After receiving the orders from the higher authorities, AOs can add give effect for external orders by navigating to the Give Effect Order(for external orders) screen.

To add a give effect to external order:

1. Click the Give Effect menu on the main AST window.

Fig: The Give Effect menu

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2. Select the Give Effect to Other Orders option. The Give Effect Order(for external orders) screen is displayed.

Fig: The Give Effect Order(fox external orders) screen


4. Type the information in the Assessment Year field. Press the Tab key after each entry.

5. Click the LoV icon for the Section and r/w fields. The list of the valid section and read with section combination is displayed.

6. Select the appropriate option from the available list. 7. Click the OK button to continue.

Note: The Date Order Passed and Text fields are optional, and the Status field is populated automatically.

8. Type the information in the Text field. 9. Type the information in the Description of the Order field. 10. Click the SAVE icon to confirm the changes made. The Type of Demand

window is displayed.

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Fig: The Type of Demand window

Note: From the selected order, the system tries to find out the type of demand—regular or penalty—that will be resulted from the current give effect order.

11. Select the type of demand you want and click the OK button to continue.

Note: If you select the Regular Demand option, you also need to specify the type of order you want to modify.

12. Click the Adjustments & Demand button. The Demand Processing screen is displayed.

13. Click the Adjustments/Additions button to make adjustments. The Adjustments/Additions screen is displayed.

14. Select the Exist radio button to indicate that an adjustment will be made. 15. Click in the Income from Salary field and type the new value to update

the existing value. 16. Click the SAVE icon to confirm the changes made. 17. Click the EXIT icon to close the Adjustments/Additions screen. The

Demand Processing screen is displayed. 18. Click the Compute button. Messages are displayed according to the

assessee status and return details. 19. Click the OK button to continue. 20. Click the SAVE icon to confirm the changes made. 21. Click the Print Results button. Messages are displayed according to the

assessee status and return details. 22. Click the OK button to continue. The Order Dates window is displayed.

Fig: The Order Dates window

23. Click the OK button to continue. The Demand Details window is displayed.

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Fig: The Demand Details window

24. Click in the Current Demand Split field and type the new value to update the existing value.

25. Click the OK button to continue. The Print Information window is displayed.

26. Click the OK button to continue. 27. Click the EXIT icon to close the Demand Processing screen. 28. Click the EXIT icon to close the Give Effect Order(for external orders)

screen.

Task

Inquiring Give Effect for External Orders

To inquire give effect for an external order:

1. Click the ENT QRY icon on the Give Effect Order(for external orders) screen.

2. Specify the selection criteria, such as the PAN, assessment year, and section.

3. Click the EXEC icon to view the results of the query.

Task

Updating Give Effect for External Orders

To update give effect for an external order:



3. Click the EXEC icon to view the results of the query. 4. Click the LoV icon for the Section and r/w fields. The list of the valid

section and read with section combination is displayed. 5. Select the new value from the available list to overwrite the existing value.

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6. Click the OK button to continue.

Note: You can make changes in the Section, r/w, Text, and Description of the Order fields but not in the PAN, Assessment Year, and Status fields. Moreover, you cannot change the order to which an effect has been given. To change these details, delete the current give effect for an external order and re-enter it.

7. Click the SAVE icon to confirm the changes made.

Task

Deleting Give Effect for External Orders

If you want to update any critical information such as the PAN, assessment year, or order to which the effect has been given, you need to delete the current give effect for the external order and add a new one.

To delete give effect for an external order:



3. Click the EXEC icon to view the results of the query. 4. Click in the PAN field to select the give effect for the external order. 5. Click the DEL icon. A message is displayed asking if you really want to

delete the record. 6. Click the OK button to continue. 7. Click the SAVE icon to confirm the changes made.

Task

Inquiring on the Type of Order Selected

This task can be performed by the CIT role. You need to log in to the system by using the user ID and password of the CIT role.

To inquire on the type of order selected:

1. Click the Give Effect menu on the main AST window. 2. Select the Orders Received option. The Order Received for Giving

Effect screen is displayed.

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Fig: The Order Received for Giving Effect screen

3. Select the type of order based on which the orders have to be queried. 4. Click the ENT QRY icon and specify the selection criteria. 5. Click the EXEC icon to view the results of the query.

Task

Inserting or Updating the Receiving Date

To insert or update the receiving date for an order:

1. Click the Give Effect menu on the main AST window. 2. Select the Orders Received option. The Order Received for Giving

Effect screen is displayed. 3. Select the type of order based on which the orders have to be queried. 4. Click the ENT QRY icon and specify the selection criteria. 5. Click the EXEC icon to view the results of the query. 6. Click in the Date Received field and type the new value or update the

existing value. 7. Click the SAVE icon to confirm the changes made.

Note: If you enter the order receiving date less than the order passing date, an error message is displayed prompting you to enter the valid order receiving date.

CYU

Q1. Clicking which of the following buttons takes you to the Demand Processing screen? (There is only one correct answer.)

a. Computation & Demand b. Penalty & Demand c. Adjustments & Demand

Q2. Which of the following fields can you modify while updating give effect for an external order? (There is more than one correct answer.)

a. Section

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b. PAN c. Status d. Assessment Year e. Text f. Description of the Order

Q3. Which of the following order details can you modify on the Order Received for Giving Effect screen?

a. Order receiving date b. Section c. Assessment year d. Order passing date

Summary


AST allows AOs to give effect to the external orders passed by the higher authorities.

The orders received by the CIT Admin (before the date of computerization) from various authorities such as the CIT Appeal, ITAT, HC, SC, and Settlement Commission are allocated to an AO for processing.

The AO can select such orders to give effect.


If you want to update any critical information such as the PAN and assessment year, you need to delete the current give effect for the external order and add a new one.

Answers

Q1: c; Q2: a, e, f; Q3: a

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Audit Objection and Prosecution

Duration

Topic 28: Audit Objection and Prosecution


Concept

An Overview

The AST module allows you to maintain audit objections and prosecution proceedings. In this topic, you will learn the steps for performing these tasks.


Add an audit objection.

Review and reply to an audit objection.

Recognize how an auditor can reply to the AO’s reply.

Refer a case to the prosecution cell.

Maintain prosecution proceedings.

Complete prosecution proceedings.

Concept

Audit

There are two types of audits:

Internal audits: Are the audits conducted by the audit cell. The audit cell comprises the ITD staff that conducts the audit on chain basis. The audit of the work of one range is conducted by the AOs of another range within a month of completion of the relevant assessment. The purpose of the internal audit is to:

o Check the assessments made. o Detect mistakes (both arithmetical and legal) at the early stage. o Take remedial actions to improve the quality of the assessments.

Revenue audits: Are the audits conducted by the auditors from the office of Comptroller and Auditor General (C&AG) of India. The objective of the revenue audit is to check the revenue receipts and ensure that there is no revenue leakage. However, before conducting the revenue audit, the internal audit should be complete

Concept

The Process

If any mistakes are found during the audit, objections are raised. Such objections are called audit objections. Upon detection of a mistake, the auditor issues audit memos for each mistake. The AO needs to reply to each memo within three days, clarifying facts and figures. At this stage, the AO should furnish a complete reply rather than just replying that the objection would be looked into.

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For the purpose of audits, AOs are responsible for:

Keeping a proper record of receipt audit objections

Initiating and completing remedial actions within the prescribed time limits

Maintaining proper records and registers to ensure accurate and timely submission of the prescribed statistical reports

The AOs and internal audit chains need to look for the recovery of demand raised or refunds ordered as a result of the objections raised in the preceding audits. This is important because audit objections are considered closed by the Department only after the remedial action, raising of demand or ordering of refund, is successfully complete.

Task

Adding an Audit Objection

The audit objection is raised by the auditor. This task can be done only from the auditor’s login. To raise an audit objection:

1. Click the Others menu on the main AST window. 2. Select the Audit Objections option. The Audit Objection screen

is displayed.

Fig: The Audit Objection screen

3. Type the information in the PAN field and press the Tab key. Based on the specified PAN, the details in the Concerned AO and Name fields are populated automatically.

4. Type the information in the Asmt. Yr. field.

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5. Click the Audit Cell drop-down menu and select the appropriate option.

6. Type the information in the Objection Text field. 7. Click the Severity drop-down menu and select an option to

indicate whether it is a minor or major objection. 8. Type the information in the Raised Dt field. 9. Click the Status drop-down menu and select the Raised option. 10. Click the Type drop-down menu and select the order type. 11. Click the LoV icon for the Date of Order and Section fields and

select the appropriate option from the available list. 12. Click the OK button to continue. 13. Click the SAVE icon to save the audit objection. 14. Click the EXIT icon.

Note: The audit number is generated automatically by the system. You can use this field for query only.

Task

Replying to an Audit Objection

After an audit objection is raised by the auditor, the AO can review the details and reply to the audit objection. This task can be done only from the AO’s login.

To reply to the audit objection:

1. Click the Others menu on the main AST window. 2. Select the Audit Objections option. The Audit Objection screen

is displayed. 3. Click the ENT QRY icon and specify the selection criteria. 4. Click the EXEC icon to view the results of the query. 5. Type the information in the Reply Text and Reply Date fields.

Press the Tab key after each entry. 6. Click the Status drop-down menu and select the appropriate

option to indicate whether any action is required or not. 7. Click the SAVE icon to confirm the changes made. The reply is

sent to the auditor. 8. Click the EXIT icon.

Task

Replying to the AO’s Reply

After the AO replies to the audit objection, the auditor can either close the objection or send it back to the AO.

To reply to the AO’s reply:

1. Click the ENT QRY icon on the Audit Objection screen and specify the selection criteria.

2. Click the EXEC icon to view the results of the query. 3. Click the Status drop-down menu and select the appropriate

option to indicate whether any action is required or not.

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4. Click the SAVE icon to confirm the changes made. The details are sent to the AO.


Concept

Prosecution

Chapter XXII of the IT act covers offences and cases where prosecution may be initiated by the Department. Offences may be classified as:

Technical

Non-technical

The concerned AO initiates the prosecution proceedings with the prior approval of the CIT against an assessee by sending a request to the prosecution cell, which processes the AO’s request. If prosecution proceedings are to be launched, the case is referred to the prosecution counsel. The counsel then files papers in the civil court for initiating the prosecution proceedings.

Task

Referring a Case to the Prosecution Cell

The AO can refer a case to the prosecution cell.

To refer a case to the prosecution cell:

1. Click the Others menu on the main AST window. 2. Select the Prosecutions option. The Prosecution screen is

displayed.

Fig: The Prosecution screen

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4. Type the information in the Dt. Approved by CIT field and press the Tab key. Based on the specified date, the information in the Financial Year field is populated automatically.

5. Type the information in the Remarks by AO field. 6. Click the SAVE icon to confirm the changes made. The case

details are sent to the prosecution cell. 7. Click the EXIT icon.

Task

Maintaining Prosecution Proceedings

The prosecution cell can monitor and maintain prosecution proceedings on the Prosecution screen.

To maintain prosecution proceedings:


displayed. 3. Click the ENT QRY icon and specify the selection criteria. 4. Click the EXEC icon to view the results of the query. 5. Type the information in the Date Initiated, Sections, and

Remarks by Prosecution Cell fields. Press the Tab key after each entry.

6. Click the SAVE icon to confirm the changes made. This initiates the proceedings against the assessee.


Task

Completing Prosecution Proceedings

To complete prosecution proceedings:


displayed. 3. Click the ENT QRY icon and specify the selection criteria. 4. Click the EXEC icon to view the results of the query. 5. Type the information in the Date of Completion field. Press the

Tab key after each entry. 6. Click the Result drop-down menu and select the appropriate

option to indicate the result of the proceedings. 7. Type the information in the Fine field if the result is fine. 8. Click the SAVE icon to confirm the changes made. This completes

the proceedings. 9. Click the EXIT icon.

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CYU

Q1. How is the number for the audit objection generated? (There is only one correct answer.)

a. It is generated by the auditor after an approval from the CIT. b. It is generated by the CIT. c. It is generated automatically by the system.

Q2. In which of the following fields you specify whether it is a major or minor objection? (There is only one correct answer.)

a. Audit Cell b. Severity c. Status d. Type

Q3. What is required for sending a case to the prosecution cell? (There is only one correct answer.)

a. The case should be complete. b. The case should be approved by the CIT. c. The auditor should have replied to the AO’s reply.

Summary


The AST module allows you to maintain audit objections and prosecution proceedings.

There are two types of audits: o Internal audits that are conducted by the audit cell o Revenue audits that are conducted by the auditors from the office of

C&AG of India

If any mistakes or issues are found during the audit, audit objections are raised.

Upon detection of a mistake, the auditor issues audit memos for each mistake. The AO needs to reply to each memo within three days.

An objection is considered closed only when the remedial action is taken.

Chapter XXII of the IT act covers offences and cases where prosecution may be initiated by the Department.

The concerned AO can initiate prosecution proceedings against an assessee with the prior approval of the CIT by sending a request to the prosecution cell, which would process the AO’s request.

If prosecution proceedings are to be launched, the case is referred to the prosecution counsel that files papers in the civil court for initiating the prosecution proceedings.

Answers

Q1: c; Q2: b; Q3: b

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Generating Reports in AST

Duration

Topic 29: Generating Reports

50 minutes

Concept

An Overview

The AST module allows you to generate the various types of reports. In this topic, you will learn about the different types of reports and the steps for generating them.


List the various types of reports.

Understand the outputs of the various types of reports.

Generate the various types of reports.

Concept

Types of Reports

Reports are integral to the working of the DIT. In the 3 Tier version of the AST module, the report strategy has been changed. Now, reports are not generated on demand and at the local computer.

You can generate the following two types of reports:

Scheduled reports: Are the reports that you can schedule for a later date and time. If you indicate a later date and time on the report parameter form, the report stays in the submitted state until that date and time and then it is generated.

Online reports: Are generated as soon as you submit them. Therefore, you don’t need to view the status of such reports. You can directly go and download them. To identify if a particular report is an online report, check the Schedule Date, Time, and Schedule Range fields on the report parameter form. These fields are blank for an online report.

Note: If you keep the date and time of a scheduled report as the current date and time, it is generated instantly like an online report.

Concept

Process of Generating Reports

In the 3 Tier version, you need to perform the following three key steps for generating a report:

1. Entering report parameters: First, you need to enter the report parameters, required inputs for the report, on its associated report

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parameter form. This form has a toolbar that provides the standard functionality for all types of reports. This step results in the report being generated and stored at the application server.

2. Checking the status of a report: Next, you check the status of the report from the Report Status Details screen.

3. Downloading a report: Finally, you need to download the report from the Report Status Details screen. When you log in, AST also reminds you about downloading the report by displaying a message indicating that the report is generated and ready for download. When you download the report, it gets saved in the ITDSPOOL folder in the C drive on your local machine. You can access this folder to view and print the report, whenever required.

Concept

Status of a Report

The report status can be one of the following:

Submitted: The request for the report has been submitted.

Enqued: The report generation has been started.

Finished Successfully: The report has been generated and stored at the application server. You can view the report with this status and then print it.

Terminated with Error: The report has not been generated due to errors.

When you send a request for a report, the report is first submitted and then queued for generation.

Concept

Categorization of Reports

The various reports available in AST can be categorized as:

Proceeding Outputs, which includes the following: o Refund Register Report o Cancelled Cheques Report o Refund Voucher

Notices, which includes the following: o Notice u/s 142(1) o Notice u/s 143(2) o Notice u/s 148

Lists, which includes the following: o List of Stop Filers o List of Cases Selected for Scrutiny o List of Cases Requiring Transfer o List of Non-Filers

Periodic Reports, which includes the Monthly Telegraphic Report.

Registers, which includes the following:

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o Assessing Officer's Control Book o Register of Receipt of Tax Return o Register of Penalty Proceedings o Register of Internal Audit Objections o Register of Reopened Cases o Register of Revenue/Receipt Audit Objections o Register of Prosecution o Register of Give Effect Order

Other Reports, which includes the following: o Rectification Receipt o Return Mismatch o Return Printing o TDS/TCS Reports o Letters for Unpaid Refunds

When you send a request for a report, the report is first submitted and then queued for generation.

Task

Entering Report Parameters

The steps for generating a report are similar for all types of reports in all modules in the ITD application.

To generate a Return Printing report.

1. Click the Reports menu on the main AST window.


2. Select the Return Printing option. The Return Printing screen is displayed.

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Fig: The Return Printing screen

3. Type information in the PAN field. 4. Type information in the Asmt Yr field. 5. Click the Form Type drop-down menu and select the appropriate option

from the available list. 6. Click the LoV icon for the Ack No field. A window showing all the

available records is displayed. 7. Select the appropriate option from the available list. 8. Click the OK button to continue. 9. Click the LoV icon for the Report_SCHD field. A window showing all the

available records is displayed. 10. Select the appropriate option from the available list. 11. Click the OK button to continue. 12. Click the Generate button. A message is displayed indicating that the

report has been submitted for generation.

Fig: The message indicating that the report has been submitted and displaying the Report ID and Destination file name


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Note: This message has two IDs. The short ID is the report number, and the long ID has a format. The first few characters of the long ID are the name of the form (as shown on the report parameter form). The next part is the date of report submission, such as 26MAR09. The last part is the time when the report is submitted in the HHMMSS format, where HH is in the 24 hour format.

14. Click the EXIT icon. The report is submitted for generation, and the main AST window is displayed.

Task

Checking the Status of a Report

After entering report parameters, you can check the status of the report from the Report Status Details screen.

To check the status of a report.

1. Click the Action menu on the main AST window.

Fig: The Action menu

2. Select the Main Menu option. The ITD main page is displayed. 3. Click the Reports menu.

Fig: The Reports menu on the ITD main page

4. Select the Report Status Details option. The Report Status Details screen is displayed.

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Fig: The Report Status Details screen

5. Type the report number in the Report Id field. 6. Click the Search button. The details of the report are displayed.

Note: You can view the status of all reports by just clicking the Search button without entering any details in the Report Id field. This shows the details of all the reports generated by the particular user ID using which you have logged in.

7. Check the status of the report from the Status field.

Task

Downloading a Report

After checking the status of the report, you can download the report from the Report Status Details screen.

To download a report.

1. Click the Download Reports button on the Report Status Details screen. The Report Download screen is displayed.

Note: You can download a report only if the report shows the status Finished Successfully. There is another way of downloading a report. You can select the Report Download option from the Reports menu on the ITD main page.

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Fig: The Report Download screen

2. Select the check box for the report you want to download. 3. Click the Download Report button. A message is displayed indicating

that the report has been downloaded.

Fig: The message indicating that the report is downloaded

Note: If you don’t want to download a report, you can delete it by clicking the Delete Without Download button.


Note: After you download the report, it is removed from the list of reports on the Report Status Details screen and the number of reports reduces by the number of reports downloaded.

5. Double-click the My Computer icon on the desktop. The My Computer window is displayed.

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Fig: The My Computer window

6. Double-click the C drive. The data in the C drive is displayed.

Fig: The Explorer window showing the contents of the C Drive

7. Double-click the ITDSPOOL folder. The downloaded reports are displayed.

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Fig: The contents of the ITDSPOOL folder

8. Right-click the report you want to view and select the Open With option.

Fig: The right-click menu for the report

9. Click the WordPad option in the submenu. The report is displayed.

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Fig: A sample report output

Concept

Refund Register Report

The Refund Register Report is generated to display a list all the refunds issued on pre-printed continuous computer refund stationery. To generate the Refund Register Report, you need to specify the payment mode, returns to be printed, cheque date, and refund amount.

Fig: Sample Refund Register Report

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Concept

Cancelled Cheques Report

The Cancelled Cheques Report is generated to display a list of all the cancelled refund cheques.

To generate the Cancelled Cheques Report, you need to specify the cancellation date.

Fig: Sample Cancelled Cheques Report

Concept

Refund Voucher

A refund voucher is generated for the assessees who have been given a refund after processing. The following three types of refund vouchers can be generated:

Less than Rs. 10

Between Rs. 10 and less than Rs. 25,000

Greater than or equal to Rs. 25,000

To generate a refund voucher, you need to specify the refund type, cheque date, amount, starting cheque number, end cheque number, and the entity to whom the amount is to be refunded.

The number of refund vouchers that can be printed can go up to:

The minimum number of refunds pending for printing in the system

The end refund cheque number entered in the system.

Concept

Notice u/s 142(1)

A notice u/s 142(1) is generated to ask the assessee to furnish the relevant documents for an assessment.

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To generate a notice u/s 142(1), you need to specify the AO code and print date.

Fig: Sample Notice u/s 142(1)

Concept

Notice u/s 143(2)

A notice u/s 143(2) is generated to intimate the assessee and request additional information, if required, before conducting an assessment.

To generate a notice u/s 143(2), you need to specify the AO code and print date.

Fig: Sample Notice u/s 143(2)

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Concept

Notice u/s 148

A notice u/s 148 is generated to issue a notice to assessees, asking them to furnish the return of their income for an assessment year.

To generate a notice u/s 148, you need to specify the AO code and print date.

Fig: Sample Notice u/s 148

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Concept

List of Stop Filers

The List of Stop Filers is generated to display a list of the assessees who have stopped filing their returns after a few assessment years. To generate the List of Stop Filers, you need to specify the source of income of the assessees.

Fig: Sample List of Stop Filers

Concept

List of Cases Selected for Scrutiny

The List of Cases Selected for Scrutiny is generated to display a list of cases that are selected for further investigation. To generate the List of Cases Selected for Scrutiny, you need to specify the AO code and assessment year.

Fig: Sample List of Cases Selected for Scrutiny

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Concept

List of Cases Requiring Transfer

The List of Cases Requiring Transfer is generated to display a list of cases that need to be transferred from one jurisdiction to another. To generate the List of Cases Requiring Transfer, you need to specify the AO code and assessment year.

Fig: Sample List of Cases Requiring Transfer

Concept

List of Non-Filers

The List of Non-Filers is generated to display a list of the assessees who have not filed their returns for an assessment year. This list can be generated only after the due date for filing has elapsed and data entry of RRR is complete. To generate the List of Non-Filers, you need to specify the AO code and assessment year.

Fig: Sample List of Non Filers

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Concept

Monthly Telegraphic Report

To generate the Monthly Telegraphic Report, you need to specify the CIT Appeals code, assessment year, month, financial year, and old appeal date for which the report is required.

Fig: Sample Monthly Telegraphic Report

Concept

Assessing Officer's Control Book

The Assessing Officer's Control Book is also referred to as the Blue Book. To generate the Assessing Officer's Control Book, you need to specify the AO code and assessment year.

Fig: Sample Assessing Officer’s Control Book

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Concept

Register of Receipt of Tax Return

To generate the Register of Receipt of Tax Return, you need to specify the AO code and filing date.

Fig: Sample Register of Receipt of Tax Return

Concept

Register of Penalty Proceedings

To generate the Register of Penalty Proceedings, you need to specify the initiation date.

Fig: Sample Register of Penalty Proceedings

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Concept

Register of Internal Audit Objections

To generate the Register of Internal Audit Objections, you need to specify the AO code and the date when the objection was raised.

Fig: Sample Register of Internal Audit Objections

Concept

Register of Reopened Cases

To generate the Register of Reopened Cases, you need to specify the AO code and the date when the notice was issued.

Fig: Sample Register of Reopened Cases

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Concept

Register of Revenue/Receipt Audit Objections

To generate the Register of Revenue/Receipt Audit Objections, you need to specify the AO code and the date when the notice was issued.

Fig: Sample Register of Revenue/Receipt Audit Objections

Concept

Register of Prosecution

To generate the Register of Prosecution, you need to specify the AO code and filing date.

Fig: Sample Register of Prosecution

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Concept

Register of Give Effect Order

To generate the Register of Give Effect Order, you need to specify the AO code.

Fig: Sample Register of Give Effect Order

Concept

Rectification Receipt

A rectification receipt is generated to issue a receipt to the assessee for the rectification application submitted by him or her.

To generate a rectification receipt, you need to specify the AO code, PAN, and assessment year.

Fig: Sample Rectification Receipt

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Concept

Return Mismatch

The Return Mismatch report is generated to display a list of the mismatches that occur due to incorrect data entry in the system or the mistakes made by assessees.

To generate the Return Mismatch report, you need to specify the bundle AO code and receipt year.

Fig: Sample Return Mismatch Report

Concept

Return Printing

The Return Printing report is generated to extract the information entered in a return. This report includes information on all schedules.

To generate the Return Printing report, you need to specify the PAN, assessment year, form type, and the type of report to be printed.

Fig: Sample Return Printing

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Concept

TDS/TCS Reports

To generate a TDS/TCS report, you need to specify the PAN, assessment year, and form type.

Fig: Sample TDS/TCS Reports

Concept

Letters for Unpaid Refunds

A letter for unpaid refunds is used to generate the intimation letter for the assessee, mentioning the reasons for the unpaid refunds.

To generate a letter for unpaid refunds, you need to specify the PAN and assessment year.

CYU

Q1. In the process of generating a report, what is the next step after you provide the required inputs for the report? (There is only one correct answer.)

a. Printing the report b. Transferring the report c. Downloading the report d. Checking the status of the report e. Assigning the report

Q2. What is the purpose of generating a notice u/s 143(2)? (There is only one correct answer.)

a. Asking the assessee to furnish the return of income for an assessment year

b. Intimating the assessee and requesting additional information before conducting an assessment

c. Asking the assessee to furnish the relevant documents for an assessment

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Q3. How does AST remind you that the report is ready for download? (There is only one correct answer.)

a. By displaying a message when you log in to the system b. By sending an auto-generated e-mail to your account c. By showing a reminder when you exit from the system

Q4. Where do you provide the required inputs for generating a report? (There is only one correct answer.)

a. Report procedure form b. Report parameter form c. Report inputs form

Q5. Which of the following reports is generated to extract the information entered in a return? (There is only one correct answer.)

a. Rectification b. Receipt Return Mismatch c. Return Printing

Summary


The AST module allows you to generate the various types of reports.

There are two types of reports available in AST, scheduled and online.

The three key steps in the process of generating a report are: 1. Entering report parameters 2. Checking the status of a report 3. Downloading a report

The report status can be one of the following: o Submitted o Enqued o Finished Successfully o Terminated with Error

The various reports available in AST can be categorized as: o Proceeding Outputs, such as the Refund Register Report and

Cancelled Cheques Report o Notices, such as the notice u/s 142(1) and notice u/s 143(2) o Lists, such as the List of Stop Filers and List of Non-Filers o Periodic Reports, such as the Monthly Telegraphic Report o Registers, such as the Register of Receipt of Tax Return, Register of

Penalty Proceedings, and Register of Prosecution o Other Reports, such as the Return Mismatch and Return Printing

reports

The steps for generating or viewing a report are same for all modules in the ITD application.

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Answers

Q1: d; Q2: b; Q3: a; Q4: b; Q5: c

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Duration

Practice Session

30 minutes

Practice

Scenario: Perform the following tasks: 1. Generate the Register of Receipt of Tax Return. 2. Generate the AO’s Control Book. 3. Check the status of reports. 4. Download and view the report.

Inputs: Ensure that you have the AO code allocated to you by the trainer.


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Duration

Topic 30: Maintaining Notices


Concept

An Overview

During assessment proceedings, various types of notices are issued. In this topic, you will learn the steps for maintaining notices u/s 148 and u/s 143(2).


Maintain a notice u/s 148.

Maintain a notice u/s 143(2).

Task

Maintaining a Notice u/s 148

You can maintain a notice u/s 148 on the Notices u/s 148 screen. On this screen, you can update the information only in the Latest Dt. of Service and Print? fields. You cannot enter or delete a notice on this screen.

To maintain a notice u/s 148:

1. Click the Asmt menu on the main AST window.

Fig: The Asmt menu

2. Select the Notices u/s 148 option. The Notices u/s 148 screen is displayed.

Fig: The Notices u/s 148 screen

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3. Click the EXEC icon. The results are displayed. 4. Click the EXIT icon.

Task

Maintaining a Notice u/s 143(2)

You can maintain a notice u/s 143(2) on the Notices u/s 143(2) screen. On this screen, you can update the information only in the Date of Attending, Time of Attending, and Print? fields. You cannot enter or delete a notice on this screen.

To maintain a notice u/s 143(2):

1. Click the Asmt menu on the main AST window. 2. Select the Notices u/s 143(2) option. The Notices u/s 143(2) screen is

displayed.

Fig: The Notices u/s 143(2) screen

3. Click the EXEC icon. The results are displayed. 4. Click the EXIT icon.

CYU

Q1. Which of the following fields can you modify on the Notices u/s 143(2) screen? (There is more than one correct answer.)

a. Manual to System b. Date of Attending c. Date of First Printing d. Time of Attending e. Asmt. Yr. f. Print?

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Summary


During assessment proceedings, various types of notices are issued.

You can maintain a notice u/s 148 on the Notices u/s 148 screen. On this screen, you can update the information only in the Latest Dt. of Service and Print? fields.

You can maintain a notice u/s 143(2) on the Notices u/s 143(2) screen. On this screen, you can update the information only in the Date of Attending, Time of Attending, and Print? fields.

You cannot enter or delete notices on the notice maintenance screens.

Answers

Q1: b, d, f `

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Introduction to OLTAS

Duration

Topic 31: Introduction to OLTAS

30 minutes

Concept

An Overview

OLTAS is one of the key sub-systems of ITD. In this topic, you will learn about OLTAS, its workflow, features, the key screens, and OLTAS Dashboard.


Understand OLTAS.

Describe the OLTAS workflow.

Recognize the features of OLTAS.

Recognize the key screen in OLTAS.

Describe OLTAS Dashboard.

Concept

An Introduction

OLTAS is one of the key sub-systems of ITD. OLTAS helps ITD transfer and maintain records of direct taxes paid by taxpayers through banks. The purpose of OLTAS is to speed up the transmission of challan details, tax collections, and refunds between the authorized bank branches, ITD, and RBI for settlement of funds.

OLTAS is primarily a back-end system. OLTAS also interacts with other ITD modules. OLTAS uses PAN data from AIS and TAN data from TDS module to map the collections to jurisdictions. OLTAS data is used by AST and TDS module to give credit for taxes paid against individual income tax returns and TDS returns.

In addition to the back-end activities, officers can view the collections for their jurisdictions on OLTAS. OLTAS also allows both the taxpayers and banks to check the challan status through the Tax Information Network (TIN) Web site (www.tin-nsdl.com).

http://www.tin-nsdl.com

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Fig: A graphical representation of the concept

Concept

The Workflow

Fig: The OLTAS Workflow

The OLTAS workflow begins when taxpayers make tax payments to the designated bank. The taxpayer will use a single-copy challan, which has a main portion at the top and a taxpayer counterfoil at the bottom.

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The collecting bank branch will put a rubber stamp on the challan and its counterfoil indicating a unique Challan Identification Number (CIN). A CIN has the following three parts:

A seven-digit Basic Statistical Return (BSR) code allotted by RBI to a bank branch

The date of deposit in the dd/mm/yyyy format

The 5-digit challan serial number

The bank is also required to issue a computerized receipt that includes the following:

CIN

Taxpayer's name

PAN/TAN

Amount

Major head and minor head

Assessment year

The computerized receipt ensures that the bank has correctly captured the details provided by the taxpayer in the challan. In case of any discrepancy, the taxpayer can approach the bank or the AO for corrections. Issue of the computerized receipt has been made mandatory from 1st June, 2008.

The collecting bank branch will capture the entire challan data and transmit it in the correct file format to the bank's nodal branch from where the data is transmitted to the link cell at Nagpur. The nodal branch will also send the physical copies of the challan and the daily scrolls to the respective Zonal Accounts Office (ZAO). The link cell will forward the data to TIN at National Securities Depository Limited (NSDL) where the data file is verified for correctness of its file structure. The link cell will simultaneously advise the collection figures to RBI's Central Accounts Section (CAS), also at Nagpur.

After the data has been accepted by CAS, the total collection received is credited to the Government Account. Additionally, reports are sent to the Principal Chief Controller of Accounts (Pr.CCA) for reconciliation of direct tax collections made at the banks with the figures accounted for by the ZAOs.

Note that the link cell will send the same data to TIN and CAS. The challan data received from TIN is uploaded at NCC with all validations. From NCC, it is sent to the various RCCs.

Concept

The Features

OLTAS provides the following features:

Officers can view the reports/details of collections and refunds for their jurisdiction, including outstation payments, based on PAN/TAN.

AOs can make required changes in the challan details, in case of any error in the challan data.

A single-copy challan is used for making tax payments instead of the previously used four-copy challan.

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A unique CIN is assigned to each challan throughout the country and is used to identify the challan in OLTAS.

Taxpayers and banks can check the challan status from the TIN Web site.

Concept

The Key Screens

The key OLTAS screens can be accessed from the TAS menu. The following two key screens are used in OLTAS:

The OLTAS-31 PAN BASED COLLECTION screen: It is used to query and view collections and challan details. This screen not only provides a summary of the tax collections and refunds but also the details of each challan. To access this screen:

1. Log in to ITD application. 2. Click the TAS menu. 3. Click the Queries menu and select the OLTAS-31 PAN BASED

COLLECTION option.

The Challan Details screen: From this screen, AOs can resolve suspense challans and correct or modify the details of valid and invalid challans. To access this screen:

1. Log in to ITD application. 2. Click the TAS menu. 3. Click the Maintain Challan menu and select the Challan

Details option.

Fig: The ITD Application

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Fig: The OLTAS-31 PAN BASED COLLECTION screen (The Summary View)

Fig: The OLTAS-31 PAN BASED COLLECTION screen (The Challan Detail View)

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Concept

OLTAS Dashboard

OLTAS Dashboard is a Web-based facility that generates collection and refund reports for the Finance Minister, senior officers of Central Board of Direct Taxes (CBDT), and Cadre Controlling Chief Commissioners of Income Tax for monitoring direct tax collections on a daily basis.

TIN hosts these reports on its Web server, which can be accessed through user IDs and passwords. OLTAS Dashboard is maintained by NSDL.

OLTAS Dashboard shows the following items of information:

Total tax collection summary report

CC-wise collections and refunds report

CC-wise collections and refunds report for a particular region

Historical comparison of tax collections

CYU

Q1. OLTAS speeds up the transmission of challan details, tax collections, and refunds between which of the following parties? (There is only one correct answer.)

a. The authorized bank branches, ITD, and RBI b. The authorized bank branches, TIN, and RBI c. The authorized bank branches, ITD, and NSDL

Q2. When is a CIN assigned to a challan? (There is only one correct answer.)

a. When the challan copy is forwarded to the ZAO by the nodal branch b. When the taxpayer makes the tax payment at the designated bank branch c. When the bank branch forwards the challan to the nodal branch

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Q3. Where does the link cell forward the challan data? (There is only one correct answer.)

a. RCC b. TIN c. ZAO

Q4. Which of the following screens is used to modify valid challans? (There is only one correct answer.)

a. The Modify Challan screen b. The Modify Details screen c. The Challan Details screen

Summary


OLTAS speeds up the transmission of challan details, tax collections, and refunds between the authorized bank branches, ITD, and RBI for settlement of funds.

OLTAS is primarily a back-end system but it allows officers to view the challan collections for their jurisdiction.

Taxpayers will use single-copy challans for making tax payments. The collecting bank branch will assign a unique CIN to each challan. CIN is used to identify challans in OLTAS.

Taxpayers and banks can check the challan status from the TIN Web site.

OLTAS Dashboard generates tax collection and refund reports for the Finance Minister, senior officers of CBDT, and Cadre Controlling Chief Commissioners of Income Tax.

Answers

Q1: a; Q2: b; Q3: b; Q4: c

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Maintaining Challans in OLTAS

Duration

Topic 32: Maintaining Challans in OLTAS

30 minutes

Concept

An Overview

In addition to querying collections of challans and the total refund amount, OLTAS allows AOs to maintain challans. In this topic, you will learn how to claim suspense challans and correct challan details.


Claim suspense challans.

Correct valid and invalid challans.

Concept

Suspense Challans: An Introduction

A challan is treated as a suspense challan in the following two situations:

If the PAN/TAN provided in the challan is incorrect.

If the PAN provided in the challan is under the deduplication process and the retained PAN is yet to be decided.

In the first situation, if the PAN/TAN is incorrect and invalid, the AO code and jurisdiction for the challan will remain unknown. However, the challan payment will be included in the total collection but it will not be assigned to any jurisdiction.

In the second situation, an AO needs to determine the retained PAN from AIS. The AO will then update the challan details with the retained PAN in the Challan Details screen to claim the suspense challan.

Task

Claiming Suspense Challans

To claim a suspense challan, an AO needs to enter the retained PAN in OLTAS. After the challan has been claimed successfully by the AO, the challan payment will be included in the AO’s total challan collection.

To claim a suspense challan:

1. Click the Maintain Challan menu.

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Fig: The Maintain Challan menu option

2. Select the Challan Details option. The Challan Details screen is displayed.

3. Type a date range in the Nodal Scroll Date From and TO fields and specify an amount range in the Amount field.

4. Select the Suspense radio button and click the EXEC icon. The suspense challans within the specified criteria is displayed.

5. Type the correct PAN/TAN and remarks for the challan in the TAN/PAN and Remarks field, respectively.

6. Click the Save icon. A warming message requesting for confirmation to save the change is displayed.

Fig: The ITD Application Warning message

7. Click the Yes button. The overwritten PAN is displayed in the Old TAN/PAN field. It indicates that the details of the challan have been updated.

Task

Correcting Invalid Challans

Invalid challans are those challans that have failed certain validation checks. These challans are marked with the letter I (Invalid) in the Post Flag field on the Challan Details screen.

To correct invalid challans:

1. Click the Maintain Challan menu. 2. Select the Challan Details option. 3. Type a date range in the Nodal Scroll Date From and TO fields and

specify an amount range in the Amount field.

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4. Select the Invalid data requiring correction by AO/DO radio button and click the EXEC icon. The invalid challans within the specified criteria is displayed.

5. Click the Correct Records button to view the Correction of Assessment Year, Minor Head and Nature of Payment screen.

Fig: The Correction of Assessment Year, Minor Head and Nature of Payment screen

6. Click the LoV icon for the Minor Head field and select an appropriate value from the list and click OK.

7. Type remarks in the Remarks field and click the Save icon.

Task

Correcting Valid Challans

Valid challans are those challans that are ready to be posted to IRLA but require minor corrections. These challans are marked with the letter R (Ready) in the Post Flag field on the Challan Details screen.

To correct valid challans:

1. Click the Maintain Challan menu. 2. Select the Challan Details option. 3. Type a date range in the Nodal Scroll Date From and TO

fields and specify an amount range in the Amount field.

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4. Select the Valid data Requiring some Correction by AO radio button and click the EXEC icon. The valid challans within the specified criteria is displayed.

5. Click the Correct Records button to view the Correction of Assessment Year, Minor Head and Nature of Payment screen.

6. Click the LoV icon for the Minor Head field and select an appropriate value from the list and click OK.

7. Type remarks in the Remarks field and click the Save icon.

CYU

Q1. Which of the following challans are marked with the letter I in the Post Flag field on the Challan Details screen? (There is only one correct answer.)

a. Valid challans b. Invalid challans c. Suspense challans

Q2. Why are challans with valid PANs held under suspense? (There is only one correct answer.)

a. Because the PANs provided in these challans have disputed payments b. Because the PANs provided in these challans have failed other

validation checks c. Because the PANs provided in these challans are under the

deduplication process

Q3. How can an AO claim a suspense challan? (There is only one correct answer.)

a. By modifying the challan details b. By entering the retained PAN c. By claiming the challan payment

Summary


A suspense challan either has incorrect PAN/TAN or a PAN under the deduplication process.

The payment for a suspense challan is included in the total challan collection but it is not assigned to any jurisdiction.

AOs can claim suspense challans by updating the challan with the retained PAN.

After a challan has been claimed by an AO, the payment for the challan is included in the AO’s total challan collection.

Answers

Q1: b; Q2: c; Q3: b

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OLTAS 31 and e-Payment

Duration

Topic 33: OLTAS 31

20 minutes

Concept

An Overview

OLTAS has recently been updated with a new feature called OLTAS 31. In this topic, you will learn about OLTAS 31 and the steps for querying challans and viewing challan collections details.


Describe OLTAS 31.

Query challans.

View collections of challans.

Concept

An Introduction

OLTAS 31 is a feature of OLTAS that allows officers to check the total collection and refund amount for their jurisdiction.

OLTAS 31 is a key improvement in OLTAS. Previously, officers were unable to view outstation tax payments made by assessees in their jurisdiction. For example, when an assessee from Kolkata made tax payments in Delhi, the AO in Kolkata was unable to view this payment. To overcome this difficulty, OLTAS was enhanced with the OLTAS 31 query feature. AOs can now view all outstation tax payments made by assessees and the total amount of refund paid to assessees in their jurisdiction.

OLTAS 31 shows the following items of information:

Summary of the gross challan and refund collections and net amount of collections

Detailed view of the challan payments including outstation payments

Task

Query Challans

OLTAS 31 offers different levels of access based on the user’s role and ID. For example, AOs will be able to query only those challans that belong to their jurisdiction. If an AO queries a challan from another jurisdiction, a message at the bottom of the screen will provide the AO code for that challan.

Note that an AO will also not be able to change the AO, CCIT, CIT, and Range In-Charge code.

To query challans:

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1. Click the Queries menu from the TAS menu bar. 2. Select the OLTAS Instruction 31-(PAN based collection) option. The

OLTAS-31 PAN BASED COLLECTION screen is displayed.

Note: You can type the PAN of the challan that you want to query in the TAN / PAN field.

3. Type the date range in the Nodal branch scroll date From and To fields.

4. Click the EXEC icon. A summary report of the total challans and refund collection is displayed.

Task

View Collections of Challans

OLTAS 31 allows you to view both a summary of the gross challan and refund collections and a detailed view of each challan.

To view collections of challans:

1. Click the Queries menu from the TAS menu bar. 2. Select the OLTAS Instruction 31-(Pan based collection) option. The

OLTAS-31 PAN BASED COLLECTION screen is displayed. 3. Type the date range in the Nodal branch scroll date From and To

fields. 4. Click the EXEC icon. A summary report of the total challan and refund

amount is displayed. 5. Click the CHALLAN DETAILS button to view a detailed challan report. 6. Specify another range from the Amount drop-down menu.

Note: As per the default setting, the system will show you the details of challans in the range of 1 lakh to 5 lakhs.

7. Click the EXEC icon. The details of the challans in the specified range are displayed.

CYU

Q1. Why was the OLTAS 31 query feature introduced? (There is only one correct answer.)

a. To enable users to view outstation tax payments b. To enable users to view the total refund amount c. To enable users to view collections for all jurisdictions

Q2. What happens when you query a challan from another jurisdiction? (There is only one correct answer.)

a. The details of the challan will be displayed. b. The AO code for the challan will be displayed. c. An error message will be displayed.

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Q3. Which of the following items of information can you view using OLTAS 31? (There is only one correct answer.)

a. Gross challan and refund collections b. Gross outstation tax payments c. Details of refund paid to assessees

Summary


OLTAS 31 offers different levels of access based on the user’s role and ID.

OLTAS 31 allows an AO to view both a summary of the gross challan and refund collections and a detailed view of each challan.

An AO cannot query challans belonging to another jurisdiction or view the total collection and refund amount of another jurisdiction.

Answers

Q1: a; Q2: b; Q3: a

Notes

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Duration

Practice Session

40 minutes

Practice

Scenario: Perform the following tasks: 1. Query challans and view the details of individual challans. 2. Correct invalid challan data. 3. Make changes to valid challan data.



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Duration

Topic 34: e-Payment

20 minutes

Concept

An Overview

e-Payment allows taxpayers to pay taxes online. In this topic, you will learn about e-payment and the steps for making an e-payment.


Understand the concept of e-Payment.

Identify the steps for making an e-Payment.

Concept

An Introduction

e-Payment is similar to booking tickets online or making payments online. e-Payment allows a taxpayer to make tax payment from any location without going to a bank branch. The tax amount is electronically debited from the taxpayer's bank account and credited to the Government Account.

All direct taxes, for example, Income Tax, Corporate Tax, Fringe Benefit Tax (FBT), and Banking Cash Transaction Tax (BCTT), are to be paid online using the e-payment facility. It has been made mandatory for all assesses whose accounts are required to be audited under section 44AB and all companies to pay taxes using the e-payment facility from 1st April, 2008.

Task

Making e-Payment

To make an e-payment, a taxpayer will perform the following steps:

1. Log in to the Web site of ITD (www.incometaxindia.gov.in). 2. Click the PAY TAXES ONLINE button. It will take the taxpayer to the Tax

Information Network (TIN) Web site where all the banks offering the e-payment facility are listed.

3. Click the link at the end of the list. It will open a new Web page. 4. Select the applicable challan for the tax payment from the new Web

page. The online challan will be displayed. 5. Type the details in the challan and select a bank from the Bank Name

dropdown list. It will take the taxpayer to the bank Web site. 6. Select the type of tax payment. Then, type the user ID, password, and

the relevant details to complete the transaction.

As soon as the transaction is completed, the taxpayer will receive the counterfoil of the challan with a unique Challan Identification Number (CIN). The taxpayer can print or save this counterfoil. The taxpayer is required to quote this CIN in the ITR form.

http://www.incometaxindia.gov.in

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CYU

Q1. For which of the following is it mandatory to use the e-payment facility for paying taxes? (There is only one correct answer.)

a. All individuals b. All companies c. All taxpayers

Q2. Which of the following items is generated after a taxpayer makes an e-payment? (There is only one correct answer.)

a. CIN b. Challan copy c. Bank statement

Summary


In e-payment, the tax amount is electronically debited from the taxpayer's bank account and credited to the Government Account.

Taxpayers can make e-payments by logging in to the ITD Web site.

At the completion of the transaction, a unique CIN is generated.

The taxpayer will quote this CIN in the ITR form.

Answers

Q1: b; Q2: a

Notes

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Introduction to IRLA

Duration

Topic 35: Introduction to IRLA

40 minutes

Concept

An Overview

The primary objective of the IRLA module is to generate a comprehensive Individual Running Ledger (IRL) for each assessee. This topic will familiarize you with IRLA. In addition, you will learn how to upload manual arrears, link arrears to a PAN, calculate interest u/s 220(2), and generate 220(2) notices.


Describe IRLA.

Recognize the functions of IRLA.

Upload manual arrears.

Link arrears to an existing PAN.

Calculate interest and generate notices u/s 220(2).

Concept

What It Is?

Q. What is IRLA? A. IRLA is a module in the ITD application. It helps to generate a comprehensive IRL for each assessee. Other modules in the application, such as Tax Accounting System (TAS), AIS, and TDS, support IRLA in gathering information about the assessee.

Q. What is the purpose of IRLA? A. IRLA provides up-to-date listings of all demands, collections, and refunds for an assessee. The IRLA ledger maintains the details of all transactions that have happened since the date of computerization of the jurisdiction.

Q. What can you do using IRLA? A. You can use IRLA for carrying out various functions such as granting stay on demands, converting demands into installments, and writing off demands in the cases of the existing assessees. You can also perform administrative functions, such as entering and updating IRLA parameters, IRLA codes, holidays, rates of interest u/s 220(2), and viewing the audit log.

Concept

Functions of IRLA

The following functions can be performed using IRLA:

Maintenance of assessee ledger: IRLA maintains a record of all transactions since the date of computerization of the jurisdiction. For transactions that took place before the date of computerization, IRLA

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provides the facility to import the net demands pending as on the date of computerization.

Linking of arrears to a PAN: IRLA provides the facility to import old arrears and link them with the new PANs that have been allotted to the concerned assessees.

Maintenance of demands, collections, and refunds: IRLA maintains the current status of demands, collections, and refunds.

Granting and vacating or rejecting of stay and installments on a demand: IRLA allows you to grant stay or installments, as the case may be, on full or part of a demand that is not due. In addition, IRLA allows you to vacate or reject a stay that was previously granted.

Writing off unrecoverable demands: IRLA allows you to write off an arrear demand amount that becomes irrecoverable. However, if a collection is made from the concerned assessee, the write-off can be marked as non-active.

Maintenance of interest u/s 220(2): IRLA allows you to maintain and compute the interest u/s 220(2) applicable on delayed payment.

Generation of reports: IRLA allows the users to generate the Central Action Plan 1 (CAP 1) report, defaulters list, advance tax defaulters list, PAN link report, and ledger statement. In addition, it allows generation of various letters and notices for stay, installment, and interest u/s 221.

Provide online queries on assessee data: IRLA allows generating queries by specifying one or a combination of parameters.

Concept

Linkages Between Modules

IRLA is linked to the other modules in the following ways:

AIS: Provides information for PAN validation and gives details of PAN, such as the name and address of an assessee. In addition, whenever an assessee is transferred, AIS provides IRLA with the information.

OLTAS: Provides information regarding tax collections from assessees.

AST: Provides information regarding demands, penalties, and refunds. In case any demand undergoes change, AST creates a reverse demand for the old demand and a new demand is recorded in the IRLA ledger.

TDS: Provides information regarding the TDS collections and refunds. Until the complete computerization of the TDS system, AST will continue to provide the TDS payment details.

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Task

Logging into IRLA

To access IRLA:

1. Open Internet Explorer and type the URL https://itdapp.incometax.net in the address bar to access the ITD application.

2. Type the username and password in the Authentication Proxy Login page for authentication.

3. Click the OK button to log in. This displays the INCOME TAX APPLICATIONS SYSTEMS MENU main screen.

4. Click the IRL menu to access the IRLA module. The IRLA home page appears.

Task

Exiting from IRLA

To exit from IRLA:

1. Click the EXIT icon on the toolbar or select the Exit option on the Actions menu to exit the IRLA module.

2. Select the Exit Application option on the Actions menu to exit the ITD application.


Concept

The Initial IRLA Phase

Before computerization, the IT returns were processed either manually or through private software packages. The results of the processed returns were also maintained either manually or in the computer systems.

Since the launch of the ITD application, all data related to returns need to be uploaded to IRLA to have up-to-date information about assessees. The IRLA ledger maintains the details of all transactions that took place from the date of computerization of the jurisdiction.

To take care of the transactions that took place before the date of computerization, IRLA provides the option to import the net demands pending as on the date of the computerization.

This is the initial IRLA phase of the system.

Concept

Uploading Manual Arrears

Q. What is an arrear? A. Depending on the outcome of processing, a demand is generated for the assessee. After 30 days, the demand becomes an arrear if it is not paid by the assessee.

https://itdapp.incometax.net

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Q. How are manual arrears uploaded? A. The entries in the manual Arrear Demand and Collection Register (AD&CR) are captured in the ASCII data files and copied to a floppy to form a flat file. The Department provides the flat file to the respective jurisdiction. IRLA allows you to import these arrear entries from the floppy. In case of manual entries, you need to access the system and enter each transaction manually.

Fig: Uploading of manual arrears

Q. Where are manual arrears uploaded in the IRLA module? A. The arrear demands are uploaded to the AD&CR and current demands are uploaded to the Current Demand and Collection Register (CD&CR).

Q. What happens after the transactions are captured into the AD&CR? A. The transactions are linked to the new PAN for taking into account their effect on processing of the return. After this exercise is over, the ledger reflects the correct position of all the assessees of a jurisdiction.

Note: Once a jurisdiction is computerized, and all transactions and data prior to computerization have been entered, the system will not allow you to enter any arrear demand entries manually.

Task

Uploading Arrears from a Flat File

To upload the arrear demand entries from a flat file:

1. Click the Adncr menu on the main IRLA window.

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Fig: The Adncr menu in IRL

2. Select the Load IIRL Data option. The Load Initial IRL Data screen is displayed.

Fig: The Load Initial IRL Data screen

3. Type the name of the file to be uploaded and the path of the file in the respective fields.

4. Click the Accept button. The file name and path is verified. If the file is under your jurisdiction, the Load Data button is enabled.

Tip: If the file does not exist, an error message is displayed with the name and path of the file. If you enter a filename which exists but is not under your jurisdiction, the message ‘Data File doesn't come under current user's jurisdiction. Change the filename’ is displayed.

5. Click the Load Data button.

Note: After the data has been loaded into the manual AD&CR database, message ‘Data has been loaded successfully’ is displayed. A log file is created with a brief statistics of the loading process. The details include the total number of records read, total number of records loaded, details of the records that have

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not been loaded, and the reason why the records were not loaded.

6. Click the View Log File button. This generates a log report for the records rejected while upload.


Task

Uploading Arrears Manually

To upload the AD&CR entries manually:

1. Click the Adncr menu on the main IRLA window. 2. Select the Without Pan option. The Maintain Manual AD & CR screen is

displayed.

Fig: The Maintain Manual AD & CR screen

3. Press the Tab key. 4. Type the details of the AD&CR entry.

Note: You cannot enter two entries with the same AD&CR volume number, page number, and serial number. If you do so and click the SAVE icon, an error message ‘Record with this Adncr_vol_no, Adncr_pg_no, Adncr_sl_no for the AO already exists’ is displayed.

5. Click the SAVE icon to save the record in the database. 6. Click the EXIT icon.

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Concept

Linking Arrears to a PAN

The arrears manually uploaded or entered into IRLA may contain old PAN or General Index Register (GIR) number. After these arrears are entered into the system, IRLA links these entries to the new PANs that have been allotted to the assessees.

For linking, IRLA uses the old PAN/GIR, name, or address of the assessee as the matching criteria. However, none of the matches can be treated as a perfect match as two different assessees can have the same name. Therefore, manual intervention is required. IRLA generates a PAN link report showing the successful matches of the new PANs corresponding to each manual AD&CR entry. Then, the user can decide which PAN to allocate to a particular AD&CR entry.

After an arrear is linked to a new PAN, it will be available for all operations, such as granting of stay, installment, and write-off.

After the linking is over, the existing records are deleted from the manual AD&CR database and a record is posted in IRLA and the AD&CR database with the new PAN and the assessment year.

Task

Linking Arrears to a PAN

To link an arrear to a new 10 character PAN, you need to access the IRLA module in the ITD application.

To link arrears to a PAN:

1. Click the Adncr menu on the main IRL window. 2. Select the Without Pan option. The Maintain Manual AD & CR screen is

displayed. 3. Press the Tab key to navigate to the AD & CR Vol No text box. 4. Type the details in the AD & CR Vol No, AD & CR Pg No, and AD & CR

Sl No field. Press the Tab key after typing each entry. 5. Click the LoV icon for the Assessee Type field. This displays the

Assessee Type list. 6. Select the appropriate assessee type from the list and click the OK

button. 7. Type the assessment year in the Astt Year field and press the Tab key.

Notice the Demand raised in Financial Year field is populated automatically.

8. Click the LoV icon for the Name field. 9. Select the appropriate option from the available list and click the OK

button. 10. Type the name, address, and base tax due from the assessee in the

respective fields. 11. Click the SAVE icon. The Link With PAN button is enabled. 12. Click the Link With PAN button. The Link With PAN window is

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displayed.

Fig: The Link With PAN window

13. Type the number in the PAN field. When you type the PAN, details of that PAN are retrieved.

Tip: If you enter an invalid PAN, a message ‘Invalid PAN. Enter a PAN allotted to an assessee’ is displayed. If you enter a PAN that is valid but does not fall under your jurisdiction, a message ‘This PAN is not under your jurisdiction. Enter a PAN of your jurisdiction’ is displayed.

14. Click the Ok button. 15. Click the SAVE icon.

Tip: If you do not save the information and proceed to exit, a message ‘Do you want to save the changes you have made?’ is displayed.

16. Click the EXIT icon. This displays the IRL home page.

Concept

Interest u/s 220(2)

When a demand is paid after the due date, interest u/s 220(2) is charged from the assessee.

IRLA allows you to perform the following tasks related to interest u/s 220(2):

Computing interest payable by the assessee and reworking this interest

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whenever there is a change in the original demand or due date, or a correction in the payment amount, date, or classification, such as major-head, minor-head, and sub-head.

Printing the demand notice and the challan when the interest amount exceeds the cut-off limit.

Manually computing the interest, entering it in the field, and posting this amount for recording in the IRLA ledger.

Waiving off partially or completely the interest amount worked out u/s 220(2).

Task

Computing Interest u/s 220(2)

The user can compute interest u/s 220(2) for a demand and post the corresponding interest u/s 220(2) to the IRLA ledger. To compute interest u/s 220(2), you need to access the IRLA module in the ITD application.

To compute interest u/s 220(2):

1. Click the Demand menu on the main IRL window.

Fig: The Demand menu in IRL

2. Select the 220 Interest Demand option. 3. Select the Compute option. The Compute 220(2) Interest screen is

displayed.

Fig: The Compute 220(2) Interest screen

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4. Click the ENT QRY icon. 5. Type the details in the PAN field. 6. Click the EXEC icon. The details of the assessee are displayed. 7. Select the Demand Amount text box. 8. Click the Compute button. The interest is computed.

Note: If there is any error in the computation of the interest u/s 220(2), a message ‘An error has occurred while computing the interest u/s 220(2). Contact system administrator’ is displayed.

9. Click the Post button. A warning message ‘W-IRL41160: Are you sure of posting the 220(2) interest?’ is displayed.

Note: You can post an interest u/s 220(2) only when you have computed it. If you click the Post button without computing the interest u/s 220(2), a message ‘You can't post a 220(2) interest without computing it. Compute the interest first’ is displayed.

10. Click the OK button. A confirmation message ‘I-IRL41162: Posting successfully completed.’ is displayed.

11. Click the OK button. 12. Click the EXIT icon. This displays the IRL home page.

Task

Generating Notice for an Interest u/s 220(2)

To print a challan for interest u/s 220(2):

1. Click the Demand menu on the main IRLA window. 2. Select the 220 Interest Demand option. 3. Select the Details option. The Maintain 220(2) Interest screen is

displayed. 4. Type the details in the PAN field. The Print Challan button is enabled if

the interest amount exists. 5. Click the Print Challan button. A message ‘Are you sure of printing the

challan?’ is displayed. 6. Click the OK button. This generates the challan and the message

‘Printing successfully completed’ is displayed.

Note: The Print Challan button will submit a print request for the challan, which will be printed by the AST module.

CYU

Q1. Which of the following statements are true about the information IRLA receives from the other modules? (There is more than one correct answer.)

a. AIS provides information for PAN validation and the details of PAN, such as the name and address of an assessee.

b. OLTAS provides information regarding demands, penalties, and refunds.

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c. AST provides information regarding tax collections from assessees. d. TDS provides information regarding the TDS collections and refunds.

Q2. Which of the following functions can you perform using the IRLA module? (There is more than one correct answer.)

a. Link arrears to a PAN. b. Update assessee’s address. c. Issue refund through Electronic Clearing Service (ECS). d. Maintain interest u/s 220(2). e. Generate reports. f. Grant stay on a demand.

Q3. When uploading data from a flat file, what is the next step after typing the path of the flat file? (There is only one correct answer.)

a. Click the Load Data button. b. Click the View Log File button. c. Click the Accept button.

Q4. What are the match criteria that IRLA uses for linking purposes? (There is more than one correct answer.)

a. Old PAN/GIR b. Special characteristics, such as ‘/’, ‘.’, in the PAN/GIR c. Name of the assessee d. Address of the assessee e. Payment history of the assessee

Q5. Identify the functions that IRLA allows a user to perform when computing interest u/s 220(2). (There is more than one correct answer.)

a. Waive off the interest calculated. b. Print the challan, irrespective of the amount of interest calculated. c. Update the manually computed interest in the ledger. d. Link the interest calculated to a new PAN. e. Rework the interest under specific circumstances.

Summary


The IRLA module generates a comprehensive IRL for each assessee. It provides up-to-date listings of all demands, collections, and refunds related to an assessee. The IRLA ledger maintains the details of all transactions that have happened since the date of computerization of the jurisdiction.

IRLA helps to perform the following functions: o Maintain assessee ledger. o Link arrears to a PAN. o Maintain database of demands, collections, and refunds.

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o Grant and vacate or reject stay and installments on a demand. o Allow write-off for unrecoverable demands. o Maintain interest u/s 220(2). o Generate reports. o Provide online queries on assessee data.

IRLA can be used to perform administrative functions, such as entering and updating IRLA parameters, IRLA codes, holidays, rates of interest u/s 220(2), and viewing the audit log.

The IRLA module depends on other ITD application modules in the following ways: o AIS for PAN validation and PAN details o OLTAS for tax collection details o AST for information relating to demands, penalties, and refunds o TDS for information related to TDS collection and refund

Under the initial IRLA phase of the system, transactions that occurred before computerization of a jurisdiction are either converted into a flat file and uploaded to the ITD application or manually entered one by one.

IRLA maintains separate demand registers for arrear demands, current demands, AD&CR, and CD&CR.

When all transactions and data prior to computerization of a jurisdiction have been entered, the system does not allow the user to enter further arrear demand entries manually.

The data uploaded from the manual AD&CR is linked to the old PAN/GIR of an assessee. IRLA links these entries to the new PANs that have been allotted to the concerned assessees using certain match criteria.

When a demand becomes an arrear, interest u/s 220(2) is charged from the assessee. IRLA allows the user to: 1. Compute and rework the interest payable u/s 220(2) by the

assessee. 2. Print the demand notice and the challan. 3. Record the manually computed interest in the IRLA ledger. 4. Waiving off partially or completely the interest amount worked out u/s

220(2).

Answers

Q1: a, d; Q2: a, d, e, f; Q3: c; Q4: a, c, d; Q5: a, c, e

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Entering Arrears in IRLA

Duration

Topic 36: Entering Arrears in IRLA


Concept

An Overview

In this topic, you will learn how to enter arrears in IRLA.

By the end of this topic, you will be able to enter arrears into the IRLA ledger.

Concept

Entering Arrears Online

A demand that is not paid within 30 days from the date of its generation becomes an arrear.

The arrears that are due prior to the computerization of a jurisdiction can be entered into IRLA manually against the assessee’s PAN. This helps to ensure that each assessee’s Individual Running Ledger (IRL) is up-to-date.

Task

Entering Arrears Online

To enter an arrear manually, you need to access IRLA in the ITD application.

To enter arrears online in IRLA:

1. Click the Adncr menu on the main IRL window.

Fig: The Adncr menu

2. Select the With Pan option. The Maintain AD & CR screen is displayed.

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Fig: The Maintain AD & CR screen

3. Type the PAN of the assessee in the PAN field. 4. Type the assessment year in the Astt Yr field. The Demand raised in

Financial Year field is populated automatically. 5. Type the AD & CR volume number in the AD & CR Vol No field and press

the Tab key. 6. Type the AD & CR page number in the AD & CR Pg No field and press

the Tab key. 7. Type the AD & CR serial number in the AD & CR Sl No field. 8. Type the amount of the base tax in the Base Tax field. 9. Click the SAVE icon. 10. Click the EXIT icon.

CYU

Q1. After how many days from the date of generation does a demand become an arrear? (There is only one correct answer.)

a. 45 days b. 15 days c. 30 days

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Summary


A demand becomes an arrear if it is not paid within 30 days of its generation.

The arrears that are due prior to the computerization of a jurisdiction can be entered into IRLA manually against the assessee’s PAN.

Answers

Q1: c

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Duration

Topic 37: Arrears: Stay, Write-off, and Instalments


Concept

An Overview

In the IRLA module, you can grant stay or installments, as the case may be, on full or part of an arrear. In addition, IRLA allows you to write off an arrear. In this topic, you will learn how to do these tasks.


Grant a stay on an arrear demand.

Write off an arrear demand.

Grant an installment plan on an arrear demand.

Concept

Granting a Stay

IRLA allows you to grant a stay on full or part of an arrear amount and print the letter for the stay.

The assessee is not treated as a defaulter for the period of stay. If the period of the stay expires and no payment is made, the system treats the assessee as a defaulter.

Task

Granting a Stay

To grant a stay on an arrear, you need to access the IRLA module in the ITD application.

To grant a stay:

1. Click the Demand menu on the main IRLA window.

Fig: The Demand menu in IRL

2. Select the Stay Details option. The Maintain Stay screen is displayed.

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Fig: The Maintain Stay screen

3. Type the PAN of the assessee in the PAN field. 4. Type the assessment year in the Ast Yr field. 5. Click the Select Demand button. The Active Demands window is

displayed.

Fig: The Active Demands screen

6. Click the OK button. The Demand Details are displayed on the screen.

Fig: The demand details on the Maintain Stay screen

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7. Type the date of the application in the Appln Dt field and press the Tab key.

8. Type the reference number of the application in the Appln Ref field and press the Tab key.

9. Type the arrear amount that has to be put on stay in the Stay Amt field and press the Tab key.

10. Type the period for which the stay has to be granted in the Stay Dt and Stay Upto Dt fields.

11. Click the LoV icon for the Stay Type field and select the appropriate option from the list displayed.

12. Click the LoV icon for the Stay Reason field and select the appropriate option from the list displayed.

13. Click the LoV icon for the Stay Auth field and select the appropriate option from the list displayed.

14. Type the remarks in the Remarks fields. 15. Select the Granted radio button under the Stay Status section. 16. Click the SAVE icon. 17. Click the OK button. 18. Click the EXIT icon.

Concept

Writing Off Arrears

IRLA allows you to write off an arrear that has become irrecoverable due to reasons such as death of the assessee or liquidation of the company. For a true picture of the arrears due, you should remove all irrecoverable demands.

An arrear is eligible for a write-off if it has been:

Outstanding for more than three years

Proved to be clearly irrecoverable by all means open to the ITD

A write-off can be granted on full or part of an arrear amount. However, if a collection is made from the concerned assessee, the write-off can be marked as non-active.

Task

Writing Off Arrears

To write off an arrear, you need to access the IRLA module in the ITD application.

To write off an arrear:

1. Click the Demand menu on the main IRLA window. 2. Select the Writeoff Details option. The Maintain Write Off screen is

displayed.

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Fig: The Maintain Write Off screen

3. Type the PAN of the assessee in the PAN field and press the Tab key. 4. Click the Select Demand button and select the appropriate option from

the list displayed. 5. Click the OK button. The Demand Details are displayed on the screen. 6. Type the write off reference date in the Writeoff Ref Dt field and press the

Tab key. 7. Type the write off reference in the Writeoff Ref field and press the Tab

key. 8. Type the amount to be written off in the Writeoff Amt field and press the

Tab key. 9. Type the write off date in the Writeoff Dt field. 10. Click the LoV icon for the Writeoff Auth field and select the appropriate

option from the list displayed. 11. Click the LoV icon for the Writeoff Reason field and select the

appropriate option from the list displayed. 12. Type the remarks in the Remarks fields. 13. Select the Granted option under the Writeoff Status section. 14. Click the SAVE icon. 15. Click the OK button. 16. Click the EXIT icon.

Concept

Granting Installments

In certain cases, you may need to extend the time for the payment of the arrear. This can be done by allowing the assessee to pay in installments; subject to conditions as you may think appropriate for the case.

IRLA allows you to grant installments on full or part of an arrear amount. The system offers flexibility for working out the installment due dates and amounts. You can either directly enter the due dates and amounts for the installment plan

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or let IRLA generate the due dates and amounts based on the specified parameters. After defining the installment dates and amounts, you can print the installment letter and the relevant challans.

If the installment plan is not adhered to, the assessee is considered a defaulter. If any one installment is not paid by the defined due date:

The assessee is deemed to be in default for the balance amount outstanding.

The other installment or installments shall be deemed to have been due on the same date as the installment actually in default.

Task

Granting Installments

To grant installments, you need to access the IRLA module in the ITD application.

To grant installments:

1. Click the Demand menu on the main IRLA window. 2. Select the Instalment Details option. The Maintain Instalment screen is

displayed.

Fig: The Maintain Instalment screen

3. Type the PAN of the assessee in the PAN field and press the Tab key. 4. Type the assessment year in the Ast Yr field and press the Tab key. 5. Click the Select Demand button. The Active Demands window is

displayed. 6. Click the OK button. The Demand Details are displayed on the screen.

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7. Type the date of the application in the Appln Dt field. 8. Type the reference number of the application in the Appln Ref field. 9. Type the arrear amount that has to be put on installments in the Instmnt

Amt field. 10. Type the installment date in the Instmnt Dt field. 11. Select the relevant authorization code from the drop-down list for the

Instmnt Auth field. 12. Type the remarks in the Remarks fields. 13. Select the Granted radio button under the Instmnt Status section. 14. Click the Generate Inst Plan button. The Enter Instalment Criteria

window is displayed.

Fig: The Enter Instalment Criteria window

15. Type the number of installments and installment start date in the respective fields.

16. Select the frequency of installments from the Unit of Time drop-down list.

17. Type the time factor in the Time Factor field. 18. Click the OK button. An installment plan is generated for the assessee. 19. Click the SAVE icon. 20. Click the OK button. 21. Click the EXIT icon.

CYU

Q1. For which of the following actions does IRLA allow you to generate a letter/challan? (There is more than one correct answer.)

a. When a stay is granted on an arrear b. When a write-off is granted on an arrear c. When an installment plan is granted on an arrear d. When a new PAN is linked to an arrear

Q2. When does an arrear become eligible for a write-off? (There is only one correct answer.)

a. When it has been outstanding for more than two years b. When it has been outstanding for more than three years c. When it has been outstanding for more than six months

Summary


IRLA allows you to grant a stay on full or part of an arrear amount. When no payment is made within the stay period, the assessee is treated as a

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defaulter.

A stay letter can be generated when a stay is granted.

You can write off an arrear when: o It has been due for more than three years. o It has become irrecoverable by all means open to the ITD.

IRLA allows you to grant installments on full or part of an arrear amount as per the specified parameters. An assessee is treated as a defaulter if the installment plan is not adhered to.

Answers

Q1: a, c; Q2: b

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Generating Reports and Ledgers in IRLA

Duration

Topic 38: Generating Reports and Ledgers


Concept

An Overview

In the IRLA module, you can generate various reports and queries by specifying one or a combination of parameters. In this topic, you will learn how to generate Current Demand and Collection Register (CD&CR) reports and Arrear Demand and Collection Register (AD&CR) reports. In addition, you will learn how to generate and query ledgers and summary ledgers.


Generate CD&CR reports.

Generate AD&CR reports.

Generate and query ledgers.

Generate and query summary ledgers.

Concept

Generating Reports

To keep a record of all demands raised and collections made from the assessees, IRLA maintains a register. This is called the Demand and Collection Register (D&CR).

The D&CR is of two types:

CD&CR: Contains all cases of demands raised during the current financial year.

AD&CR: Contains all cases of uncollected demands created before the current financial year. At the beginning of a financial year, all arrears due from the CD&CR are brought forward/transferred to the AD&CR.

IRLA allows you to generate CD&CR and AD&CR reports based on specific parameters. If no parameters are specified, the entire register is printed.

Task

Generating a CD&CR Report

This report gives all the CD&CR entries within the time frame specified. To generate a CD&CR report, you need to access the IRLA module in the ITD application).

To generate a CD&CR report:

1. Click the Reports menu on the main IRLA window.

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2. Select the Current Demand Collection Reg option. The Current Demand and Collection Register screen is displayed.

Fig: The Current Demand and Collection Register screen

3. Type the specific period for which you require the CD&CR report in the Date from and to fields.

4. Click the drop-down arrow for the Destination Type field. 5. Click the GEN icon.

A message specifying the report ID and destination name appears. The report is generated as per the scheduled time and date specified in the parameter form. Use the report ID for checking the status of the report and downloading it. The

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report will be downloaded to the C:\ITDSPOOL folder on your computer. Use the destination name to identify the report in this folder.

Fig: The CD & CR Report

Task

Generating a AD&CR Report

This report gives a list of all the AD&CR entries. It also includes a list of the stayed demands and the demands for which installments or write-offs have been granted. To generate an AD&CR report, you need to access the IRLA module in the ITD application.

To generate a AD&CR report:

1. Click the Reports menu on the main IRLA window. 2. Select the Defaulters List option. The Parameter Screen For Defaulters

List screen is displayed.

Fig: The Parameter Screen for Defaulters List screen

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3. Click the LoV icon for the Assessee Type field and select the appropriate option from the displayed list.

4. Click the OK button. 5. Click the GEN icon.

A message specifying the report ID and destination name appears. The report is generated as per the scheduled time and date specified in the parameter form. Use the report ID for checking the status of the report and downloading it. The report will be downloaded to the C:\ITDSPOOL folder on your computer. Use the destination name to identify the report in this folder.

Fig: The AD & CR Report

Concept

Generating Ledgers

IRLA allows you to query data based on the parameters specified by you. Based on the parameters, IRLA displays:

A list of transactions mapping to all parameters

A list of transactions within each assessment year for the PAN

You can specify any number of parameters in any combination. Some parameters that you can use while querying ledgers:

PAN

Assessment year

Transaction date

Transaction due date

Transaction amount

Assessee type

Stay, installment, or write-off terms

For date or amount, you can enter a range as the criteria.

If you do not specify the parameters, IRLA provides a comprehensive ledger for

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each assessee and you can select a particular entry in the ledger to view the complete details.

Note: You can only query data for assessees under your jurisdiction.

Task

Querying Ledgers

To query a ledger, you need to access the IRLA module in the ITD application.

To query a ledger:

1. Click the Queries menu on the main IRLA window.

Fig: The Queries menu

2. Select the Ledger Query option. The Individual Running Ledger Account Query screen is displayed.

Fig: The Individual Running Ledger Account Query screen

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3. Type the period of the assessment years for which you require the data in the Assessment Year: From and To fields.

4. Click the LoV icon for the Assessee Type field and select the appropriate option from the displayed list.

5. Click the OK button. 6. Select the Demands Only checkbox. 7. Click the EXEC icon. The results of the query are displayed in the order of

the PAN numbers and the assessment years for each PAN.

Fig: The results of querying a ledger

8. To view the details of the PAN for the next assessment year, click the DOWN icon (an arrow pointing downwards). The details for the next assessment year are displayed.

9. To view the details of the next PAN, click the PAN field. 10. Click the RIGHT icon (an arrow pointing to the right). The details of the

next PAN are displayed.

Task

Querying Summary Ledgers

To query a summary ledger:

1. Click the Queries menu on the main IRLA window. 2. Select the Summary Ledger Query option. The Summary Ledger

Query screen is displayed.

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Fig: The Summary Ledger Query screen

3. Click the ENT QRY icon. 4. Type the PAN of the assessee in the PAN field. 5. Click the EXEC icon. The summary ledger details for the assessee are

displayed. 6. Click the EXIT icon.

CYU

Q1. Which of the following information does the AD&CR report provide? (There is more than one correct answer.)

a. Demands raised during the current financial year b. Uncollected demands c. Stayed demands d. Interest charged on demands e. Written-off demands

Q2. Which of the following parameters can you specify to query data in the IRLA module? (There is more than one correct answer.)

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a. Assessee’s name b. PAN c. Assessee’s address d. Transaction date e. Assessee type f. Arrears due from the assessee

Summary


The IRLA module supports generation of various reports and queries by specifying one or a combination of parameters. IRLA provides a comprehensive ledger for each assessee.

IRLA maintains the D&CR with records of all demands raised and collections made from the assessees. The D&CR is of two types: o CD&CR o AD&CR

You can generate the CD&CR and AD&CR reports as required by specifying the parameters.

When using IRLA to query data, the query provides a list of all transactions satisfying the input parameters and includes all transactions within each assessment year for the PAN.

Answers

Q1: b, c, e; Q2: b, d, e

Notes

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Appendix A – Frequently Asked Questions

AIS

Topic: Process-related FAQs

Question: If the data for PAN to be deleted does not exists in the AST or OLTAS table, from where will the system delete the PAN?

If the data for a PAN to be deleted does not exists in the AST or OLTAS table, the system will delete PAN data from all the relevant tables of AIS.

Topic: Application-related FAQs

Question: What are the core fields of PAN?

The core fields of PAN include:

PAN

AO code

Surname, first name, and middle name of the assessee

Surname, first name, and middle name of the assessee’s father

Date of birth of the assessee

Question: Do I need to perform the same steps for adding as well as updating assessee events?

You can add assessee events by specifying the event code. However, for updating assessee events, you need to start by clicking the ENT QRY icon to run a query and then selecting the appropriate event and updating the same.

Question: How do I update assessee event details?

To update assessee event details, perform the following steps:

1. Click the Maintenance menu on the AIS main screen. 2. Select the Assessee Event Details option. This displays the ASSESSEE EVENT

MAINTENANCE screen. 3. Click the ENT QRY icon. 4. Type the PAN in the PAN field. 5. Click the EXEC icon. This displays the existing event details of the specified PAN. 6. Select the appropriate event code, such as DEATH or DISSOLUTION, from the

Event Code drop-down list. 7. Click the Event Date field and update the event date. 8. Click the Remarks field and type a remark on the event.

Note: You cannot update the values in the PAN and the Assessee Name fields.


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Question: How do I delete the event details of an assessee?

To delete assessee event details, perform the following steps:

1. Click the ENT QRY icon on the ASSESSEE EVENT MAINTENANCE screen. 2. Select an event code from the Event Code drop-down list. 3. Click the EXEC icon to retrieve the available records related to the selected event

code. 4. Click the LEFT icon or the RIGHT icon to move to the next or previous records. 5. Click the DEL icon. 6. Click the SAVE icon to save the deletion.

Note: You can also retrieve a record for deletion by clicking the ENT QRY icon and specifying the PAN.

Question: I am unable to select all the values in the Assessee Name fields under the Previous values section. What should I do?

To select all the values in the Assessee Name section, click any of the fields in this section and then click the Select All button.

Question: What is the significance of the differently colored fields on the Restore Assessee Details Present While Updations screen?

The data on the Restore Assessee Details Present While Updations screen may be displayed in three different colors:

Violet: Fields displayed in violet implies that the data in these fields have not been updated during transactions. Therefore, these fields cannot be selected for restoration.

White: Fields displayed in white implies that the data in these fields has been changed and can be selected for restoration by clicking the data in these fields.

Grey: Fields are displayed in grey when you click the data in any field in white color to restore it. For any filed that is displayed in grey color, you can click the field to remove it from the selected fields for restoration.

Question: After a report is generated in AIS, where is the report saved by default?

After a report is generated in AIS, it is saved on the application server. You can then download the report from the server to your local machine.

Question: After downloading a report to a local machine, where is the report stored?

After the download is complete, the report is deleted from the allocated directory in the server and is stored in the ITDSPOOL folder in the C drive on your local machine.

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AST

Question: What will be the last bundle number if no bundle exists for a given year?

If no bundle exists for a given receipt year then the last bundle number is zero.

Question: What if PAN is not known?

If PAN is not known, you will have to enter the name of the assessee. If PAN is known, then the corresponding name is populated automatically by typing PAN in the PAN field.

Question: How can I add more records for the same criteria?

If you want to add more records for the same criteria after executing a query, then click the Next icon and type the new return details.

Question: Can I make corrections to an already entered return?

Yes. You can query or update the details of an already existing return. Once a return has been processed u/s 143, you cannot make any corrections to it.

Question: I have added the returns but I’m unable to initiate that bundle for processing. What should I do?

In most cases, this happens because the returns in that bundle have not been marked as reviewed. After entering the return, it is important to click the Reviewed checkbox and then click the SAVE icon.

Question: How can I check the details of an assessee, such as the AO code?

To check the details of an assessee:

1. On the Return Acknowledgment Sheet screen, type the PAN and the assessment year to query the return.

2. Click the Assessee Details button to display the Assessee Details screen. This screen shows the AO code for the assessee.

Question: Will I be able to process returns without initiating them?

No. You will not be able to process returns without initiating them. Initiating the processing of returns is a mandatory step.

Question: Can I initiate processing return-wise?

No. You cannot initiate processing return-wise. Initiation can be done only for bundles. All the returns in the bundle are initiated for processing together.

Question: I have added a return to a bundle that has already been initiated. Do I need to initiate processing for the bundle again?

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Yes. The bundle needs to be re-initiated every time a return is added to a bundle.

Question: Can I initiate multiple bundles belonging to a specific receipt year in one go?

No. As of now, you will not be able to initiate multiple bundles belonging to a specific receipt year in one go. However, the Department is in the process of getting this functionality integrated in AST.

Question: I have added a return in AST but it does not appear when I want to initiate it for processing. What should I do?

This mostly happens when the return has not been marked as reviewed on the Returns screen in AST. After entering the return in AST, it is important to select the Reviewed checkbox and then click the SAVE icon on the toolbar.

Question: How can I delete a return that has been initiated?

To delete a return that has already been initiated, you need to de-initiate it.

To de-initiate and delete a return, perform the following steps:

1. Click the Processing menu on the menu bar and select the Processing u/s 143(1) option.

2. Click the ENT QRY icon. 3. Type the bundle AO code, receipt year, and the acknowledgement in the appropriate

fields. 4. Click the EXEC icon to execute the query. In results of the query, access the record

that you wish to delete. 5. Navigate to the Start Date field by pressing the Tab key. 6. Click the Record menu on the menu bar and select the Remove option. 7. Click the SAVE icon. This de-initiates the return. 8. Click the Return Details button to navigate to the return screen. 9. Click the Record menu on the menu bar and select the Remove option. 10. Click the SAVE icon. The return is deleted from AST. 11. Click the EXIT icon.

Question: Can I initiate multiple bundles together?

Yes, you can query the bundles for an AO code and year and then, initiate the un-initiated bundles one-by-one. The bundles with the Create Status value as Not Created need to be initiated.

Question: The system has calculated a lot of interest for a return that was filed late by only a week. What could be the reason?

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The system calculates interest based on the date of filing entered while adding the return. If this date is entered incorrectly, an incorrect amount of interest may be calculated. If you suspect that the interest has been computed incorrectly, check the date of filing.

Question: Can I access the return acknowledgment sheet after querying a return?

Yes, you can access the return acknowledgment sheet after querying a return by clicking the Return Details button on the Processing screen.

Question: How can I query all returns filed on a particular date?

To query all returns filed on a particular date, perform the followings steps:

1. Click the Processing menu on the main AST window. 2. Select the Processing u/s 143(1) option. The Processing screen is displayed. 3. Click the ENT QRY icon or press the F7 key to enter a new query. 4. Type the appropriate date in the Date Filed field. 5. Click the EXEC icon or press the F8 key to execute the query. AST will display all

returns for the specified date.

Tip: Use the UP and DOWN icons to navigate between different returns.

Question: I have processed a return and saved it; however, the status of the return does not change from 'In Progress' to 'Completed'. Why?

The status of a processed return will change to Completed only after the Print Results button is clicked. Therefore, after processing and saving a return, remember to click the Print Results button as well. Clicking this button writes the result of the processing in the system and updates the status.

Question: I have a return with a refund. From where can I update the address of the assessee?

To update the correspondence address of the assessee, perform the following steps:

1. Click the Refund Address button on the Demand Processing screen. 2. Type the updated address of the assessee in the Address field. 3. Click the SAVE icon. 4. Click the EXIT icon to return to the Demand Processing screen.

Question: I have a return with a refund. From where can I update or add the bank details of the assessee?

To update the correspondence address of the assessee, perform the following steps:

1. Click the Refund Details button on the Demand Processing screen. The Refunds due to Regular Demand screen is displayed.

2. Click the Bank Details button. The Assessees bank acc. details screen is displayed.

3. Update or add the bank details of the assessee.

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Tip: Refer to the return submitted by the assessee for information related to the bank details.

4. Click the SAVE icon. 5. Click the EXIT icon.

Question: What to do if I do not find any corresponding tax entries in AST?

If you do not find any corresponding tax entries in AST, do not give any credit.

Question: What to do if TDS is claimed by the assessee but there are no corresponding tax entries in the system?

If TDS is claimed by the assessee but there are no corresponding tax entries in the system, do not give any credit. Follow the Department’s instructions.

Question: Can I delete a return after it has been processed?

No. You cannot delete a return after it has been processed.

Question: How can I change the rectification application from the Rectification Order screen?

To change the rectification application from the Rectification Order screen:

1. Click the LoV icon for the Reference Appeal Number, Date Filed and Section combination to view a list of valid values.

2. Select a new rectification application from the list. The new application will automatically overwrite the current application.

Question: Do I have to create separate rectification orders for all the rectification applications?

No, AST allows you to create a single rectification order for more than one rectification application. In the Rectification Application section of the Rectification Order screen, you can add multiple rectification applications.

Question: Once I cancel a check, can I reissue the check for the assessee?

Yes. Once a check is cancelled, you issue another check to the assessee depending on the reason indicated for cancellation.

Question: Which refund vouchers can I modify?

You can only make changes to the refund vouchers that have been issued by you. Under the refund banker scheme, you can issue cheques only to the Department or for cases where proceedings have been done manually.

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Question: Why am I unable to print the refund vouchers?

In the 3-Tier version of the ITD application, the OLAP file is required to print refunds. Check if your system has the OLAP file. If you don’t have the file on your computer, contact DITS.

Question: Can I delete a report I have generated?

Yes, you can delete a report you have generated but only if it has not been finished successfully.

Question: After completing everything, I am unable to print the refund voucher. What could be wrong?

In the 3-Tier version of the application, you need to install the printer supporting PRT file before printing the voucher.

Question: Can I delete a report I have generated?

Yes, you can delete a report you have generated but only if it has not been finished successfully.

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OLTAS


Question: How can I check if I have successfully corrected the challan details?

After you have saved the correction:

Click the Exit icon to return to the Challan Details screen.

Click the EXEC icon and check if the updated challan is listed under valid or invalid challans.

Alternatively, you can click the Correct Records button and check if the updated challan appears on the list.

IRLA

Topic: Process-related FAQs

Question: What are the matching criteria that IRLA uses for linking purposes?

For the linking purposes, IRLA uses the following matching criteria:

Old PAN/GIR match: Compares the old PAN/GIR from the manual AD&CR entries with the earlier PAN/GIR in the PAN-assessee database. The match is treated successful even if the ‘Manual AD&CR Entry’ old PAN/GIR is a substring of the earlier PAN in the PAN-assessee database. For matching, GIR characters such as ‘-’, ‘/’, and ‘.’ are ignored and the single character is swapped with the number part of the GIR. For example, A31 can also appear as 31A.

Name match: Compares initials from the manual AD&CR entries with the first characters of first name, middle name, and surname in the PAN-assessee database. If this match is found, the last part of name from manual AD&CR entries is compared to the surname in the PAN-assessee database. If this match is successful, it is printed as a probable match. For non-individual assessees, the same criteria is used. The only exception is that first and middle name in the PAN-assessee database are not included as the name of a company is stored as the surname in the PAN-assessee database.

Address match: Compares the string formed by the numeric contents of the address appearing in the manual AD&CR entries with the similar string formed by the residential address or the official address in the PAN-assessee database.

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Question: Codes Related to Stay

1. Stay Type Codes

Code Remarks F Fixed date for stay A Appeal dependent

2. Stay Reason Codes

Code Remarks A Appeals R Restriction on remittance O Others

3. Stay Authority Codes

Code Remarks HC High Court SU Supreme Court AT Income Tax Appellate Tribunal SC Settlement Commission IT IT Authority

Question: Codes for Write-Off

1. Write-Off Authority Codes

Code Remarks A ACIT/ITO B CBDT/CCIT C CIT D DCIT

2. Write-Off Reason Codes

Code Remarks D Death I Insolvency U Untraceable A Left India L Liquidation S Firm dissolved and business discontinued N No attachable assets

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Question: Codes for Granting Installments

Installment Authority Codes

Code Remarks A ACIT/ITO B CBDT/CCIT C CIT D DCIT

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Appendix B – Troubleshooting

AIS

Creating Transfer Order

Error: E 21251: Insufficient authority for this operation on transfer order %P. Cause: You do not have the authority to confirm or create a transfer order. Solution: Ensure that the issuing authority that you have specified is compatible with your designation and code.

Error: E 21271: This transfer order has already been confirmed/executed. Cause: You have chosen to build transfer order list for a transfer order that is already confirmed or executed. Solution: Type a sequence number that corresponds to an unconfirmed transfer order.

Making a Request for Transferring Individual PANs

Error: E 21256: Enter a valid AO code. Cause: You have entered an invalid or incorrect AO code. Solution: Type a valid AO Code or select a valid AO Code using the LoV option.

Error: E 21259: Can not delete transfer order %P. %P list entries exist. Cause: You cannot delete a transfer order for which transfer order list exists. Solution: Delete the transfer lists one by one and then try to delete the transfer order.

Error: E 21277: Insufficient authority to transfer the PAN %P. Cause: You have included a PAN in transfer movement list that does not fall under your jurisdiction. Solution: Remove this PAN and type a PAN that is under your jurisdiction.

Restoring PANs

Error: E 21475: Restoration request can't be entered as chaining exists for the PAN(s) - %P of this group. Contact AIS Administrator at RCC. Cause: You entered a PAN that is connected to various other PANs in the database. Solution: Type a different PAN.

Error: E 21476: Restoration request can't be entered as %P not found in PAN database. Cause: You entered an invalid PAN. Solution: Type a valid PAN.

Error: E 21477: Restoration request can't be entered as %P not found in Deleted PAN database. Cause: You entered a PAN that has not been deleted. Solution: Type a PAN that has been deleted.

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Error: E 21537: This PAN is under restoration process. You can not proceed with this PAN until the process is completed. Cause: You entered a PAN that is under the restoration process. Solution: Type a PAN that is not under any restoration process.

Error: E 21538: This PAN is under restoration process. Cause: You entered a PAN that is under the restoration process. Solution: Type a PAN that is not under any restoration process.

Deleting a PAN

Error: 21501 E: This PAN has been deleted in deduplication process. Change it with retained PAN - %P after comparing the details through AIS -> Queries -> Deleted/De-Activated PAN Details. Cause: You have entered or queried a PAN that has been deleted. Solution: Type a PAN that has been retained by the system.

Adding Assessee Events

Error: E 21231: Enter a valid PAN. Cause: You typed an invalid PAN. Solution: Type a valid PAN.

Error: E 21232: PAN and Link PAN must be different Cause: You typed the same PAN in both the Source PAN and Linked-to PAN fields while specifying the event details. Solution: Type different PANs in the Source PAN and Linked-to PAN fields.

Error: E 21233: Link to PAN must be entered. Cause: You have not specified any value in the Linked-to PAN field. Solution: Type a valid PAN in the Linked-to PAN field.

Error: E 21235: Event code is being changed. Your information for this event will be lost. Cause: You attempted to change the event code. Solution: Either click the OK button to continue with the changes or click the Cancel button to discard the changes.

Error: E 21238: Enter event date greater than date of birth. Cause: The event date that you have specified is before the date of birth of the assessee or date of incorporation of the company. Solution: Type an event date that is not less than the date of birth of the assessee or date of incorporation of the company.

Error: E 21240: Enter an assessee with a valid status for this event. Cause: The status and event that you have specified are not compatible. Solution: Specify the event code or the PAN again.

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Generating Reports in AIS

Error: 38094 E: Report File Names(s) corresponding to the selected report(s) must be entered. Cause: You have not entered or deleted the report file name(s) corresponding to the selected reports. Solution: Type a report file name for each of the selected reports(s).

Error: 38177 E: Report %P contains no data or already printed. Cause: The input, which you supplied for generation of report, has already been printed. Solution: Type the different inputs for the generation of report.

AST

Creating a Bundle

Error: Bundle Number Range should start from %P Cause: The Bundle Number Range ‘From’ is not equal to the Last Bundle Number + 1. Solution: Ensure that the Bundle Number Range ‘From’ is equal to the Last Bundle Number + 1. Error: Bundle Number Range should be between below %P and %P Cause: The Bundle Number Range with ‘From’ is not less than the Last Bundle Number or ‘To’ is not equal to Last Bundle Number. Solution: Ensure that the Bundle Number Range with ‘From’ is less than the Last Bundle Number and ‘To’ is equal to Last Bundle Number.

Deleting a Bundle

Error: Cannot delete Bundle because Return exists for a bundle in the given range. Cause: Returns exists for at least one bundle in the given range. Solution: Ensure that all the bundles are empty in the given range.

RRR

Error: The PAN is under the jurisdiction of AO %p. Do you wish to own the PAN? Causes: PAN does not exist in the system. Solution: Click Ok in the error message box. A message ‘Your request for owning up of PAN has been initiated. Processing on the PAN can be done only after transfer.’ appears.

Initiating Processing

Error: E-26080: Please specify some Bundle to create processing on line. Cause: The On Line button was clicked without specifying the bundle for which processing needs to be initiated. Solution: Query on a bundle before clicking the On Line button.

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Error: Please select the ‘Creation’ option before pressing that button. Cause: The On Line button was clicked without saving the Creation status of the bundle that needs to be initiated as Yes. Solution: Select and save the Creation status of the bundle that needs to be initiated as Yes before clicking the On Line button.

Error: 26190: Please select the 'Creation' option before clicking that button. Cause: You have clicked On Line button to initiate the proceeding for a bundle without selecting Creation option. Solution: Select Yes as creation option.


Error: E-AST26999: This order cannot be passed as more than one order initiation is available for this Pan and Assessment Year. Remove the other order initiations to proceed further! Cause: This error message is displayed while processing a return if more than one return have been initiated for the same PAN and assessment year in AST. Solution: Delete the duplicate copies of the return in AST so that only one return exists. You can delete the additional copies of the return from the Processing screen.

Error: E-AST26086: This Return cannot be processed because a revised return exists after this return. Cause: You have clicked Adjustments & Demand button from the screen used for processing u/s 143(1) but a latest return exists after this current return that you are wanting to process. Solution: Query the latest return.

Rectification Application and Order

Error: Rectification Application must be specified to create a Rectification Order Cause: Rectification order cannot be created without specifying any rectification appeal. Solution: Ensure that you specify Rectification Application for which rectification order has to be created.

Issuing Refunds

Error: E-AST26370: Letter has not been generated. Please generate the letter first. Cause: The received option was selected without generating the letter for unpaid refunds. Solution: Generate the letter for the unpaid refund and then update the response for it.

Proceeding Outputs and Queries

Error: E-26487: Intimation sheet can be re-printed for processing only. Cause: You have tried to reprint intimation sheet for non-processing type proceeding. Solution: Reprint intimation sheet for processing only.

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Error: E-26488: Challan cannot be re-printed if net demand is zero or less. Cause: You have tried to reprint challan but the current payment exceeds the gross demand. Solution: Reprint challan where payment is lower than the gross demand.

Error: E-26489: Demand notice cannot be re-printed for processing. Cause: You have tried to reprint intimation sheet for processing. Solution: Reprint demand notice for a non-processing type proceeding.

OLTAS

Claming Suspense Challans

Error: E-TAS 31178: PLEASE ENTER REMARKS FOR UPDATION OF PAN/TAN. Cause: No remarks were entered in the Remarks field after the updating PAN/TAN. Solution: Type remarks after updating PAN/TAN.

Correcting Challan Details

Error: E-TAS 31178: ENTER REMARKS Cause: No remarks were entered in the Remarks field before save the changes in the challan details. Solution: Type remarks after updating challan details.

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Appendix C – Glossary

AIS

A Area: A logical combination of one or more regions for the purpose of assigning unique codes to AO. For example, Delhi and Mumbai are areas.

C Charge: The jurisdiction of a CIT.

Circle: The jurisdiction of an ACIT.

J Jurisdiction: The group of assessees being assessed by an AO. The group may be defined by any geographical area, income levels of the assessee, or class (doctors, lawyers, or contractors) of assessees. The jurisdiction of an officer who does not directly assess any assessees is defined as the group of assessees formed by combining the jurisdiction of all AOs under that officer.

R Range: The jurisdiction of a DCIT.

Region: The jurisdiction of a CCIT.

Reference Database: A reference database of PAN created in CIB. This reference database is created on the basis of records existing in AIS. Later, the reference database in CIB is used to populate PAN for parties.

S Special Range: The jurisdiction of a DCIT who directly assesses taxpayers whose returned income is greater than or equal to Rs. 10 lakhs.

T Transfer Movement: A single assessee’s transfer under a specific transfer order, defined by the combination of PAN, the old AO code, and the new AO code. For example, if 10 assessees are being transferred through one transfer order, then there will be 10 different transfer movements for that particular transfer order.

Transfer Order List: A group of assessees selected for transfer in a specific transfer order. The selection of assessees is done on the basis of certain criteria such as status, employer’s name, or nature of business.

W Ward: The jurisdiction of an ITO.

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AST

A Audit Objection: An objection raised by the audit cell or C&AG.

B Bundle: A collection of returns received during a particular financial year.

D Date of Service: The date when the order will be served to the assessee. Date of service is important because any delay from the assessee’s end in responding to the order or notice is calculated based on the date of service.

I Internal Audits: Audits conducted by the ITD staff to check the assessments made and detect mistakes at the early stage so that timely remedial actions can be taken.

ITDSPOOL Folder: A folder in the C drive on your local machine where all reports generated by the ITD application are downloaded.

N Non-Filers: Assessees who have not filed their returns for an assessment year.

P Parameter Form: A form where you need to provide the required inputs for generating a report.

Processing Year: The year in which transactions are processed.

R Record: A block that displays a row from the database. When an operator creates, modifies, or deletes a record, that action causes a corresponding row in the database to be automatically created, modified, or deleted when the transaction is saved.

Revenue Audits: Audits conducted by the office of C&AG of India to check the revenue receipts and ensure that there is no revenue leakage.

Read with Section: A section that is read with the main section to pass an order.

Rectification Application: A written petition filed by the assessee requesting for certain corrections in an order passed by the Department.

Rectification Order: An order passed after a hearing by the AO, CIT Admin, CIT Appeal, and ITAT accepting or rejecting the corrections requested by the assessee in the rectification application.

S Stop Filers: Assessees who have stopped filing their returns after a few assessment years.

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Suo Moto: A written petition filed by the assessee requesting for certain corrections in an order passed by the Department.

OLTAS

C Challan Identification Number: A unique identification number assigned to each challan at the time of making tax payment. CIN is used to identify a challan in OLTAS. The taxpayer will mention this number in the ITR form.

O OLTAS 31: OLTAS 31 is a feature of the OLTAS module that allows officers to check the total collection and refund amount for their jurisdiction.

P Principal Chief Controller of Accounts: The apex authority of the accounting organization of the CBDT. The Pr.CCA has been assigned the functions relating to accounting of all receipts and refunds pertaining to direct taxes. The Pr.CCA is based in New Delhi and operates through Zonal Accounts Offices (ZAO) across the country.

S Suspense Challan: A challan that has incorrect PAN/TAN or PAN under the deduplication process.

IRLA

C Cut-Off Limit: The minimum amount of interest below which notices cannot be sent to an assessee.

F Flat Files: Data files in a specific format ready to be uploaded in the ITD application.

I ITDSPOOL Folder: A folder where all the reports generated by the ITD application are downloaded.

J Jurisdiction: The group of deductors being assessed by an AO is called the jurisdiction of that AO. The group may be defined either alphabetically, that is an AO having all deductors whose name starts with a specified letter. The group may also be defined using the nature of payment or nature of collection of the deductor.

S Stay: The extension provided by an AO to an asseesee for the payment of taxes in view of an appeal presented by the assessee. During the period of the stay, the assessee is not treated as a defaulter.

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