INCOME TAX

Streamlining of assessment of share brokers

INSTRUCTION NO. 5157/1993

 Dated: August 18, 1993

Section(s) Referred: 143(3)

Statute: Income - Tax Act, 1961

With the substantial development in the capital market, a need has arisen for a systematic collection of information regarding stock-brokers and for stream-lining their assessments. From the information collected so far from certain selected Chief Commissioners of Incometax regarding the assessments of share brokers in their regions the following facts are noticed:

i) all share brokers are not filing Incometax returns;

ii) in all cases where returns were not filed notices u/s.142(1) are not being issued;

iii) cases where subsequent returns are not being filed, are not being followed up;

iv) in a large number of cases where returns have been filed, assessments are not being made quickly.

2. The Board desires that proper attention should be paid to the cases of assessees connected with operation of capital market.

3. Also the cases of share brokers it should be ensured that the Incometax returns are duly filed and, wherever they are not filed, notices u/s.142(1) are promptly issued. Also, in cases where they are selected for scrutiny, the assessments should be finalised on priority basis. The Chief Commissioners may consider setting up separate assessment circles/wards for proper assessment of the persons connected with capital market.

F.No. 225/189/92-ITA.II