Certification of deductions claimed under section 54, 54F, 54EC etc

a) At present deductions u/s 54, 54F, 54EC etc. are not subject to any audit or certification. The possibility that the assessee claims inaccurate amount of deduction under such provisions cannot be ruled out. In order to reduce such possibility of furnishing of inaccurate particulars by the assessee and further to reduce the burden of the Department in scrutinising such claims made by the assessee in his return, it is suggested that such provisions may be amended to require the assessee to obtain a certificate from an Accountant certifying the accuracy of the claim. Further, a ceiling may be created for deductions u/s 54, 54F, 54EC etc. that deduction amount in excess of Rs. 30 lakhs in aggregate may be certified by a Chartered Accountant.

It is suggested that the assessee claiming deduction exceeding a specified amount under the provisions of section 54, 54F, 54EC etc may be required to obtain a certificate from a Chartered Accountant certifying the accuracy of the claim.

Source- Pre-Budget Memorandum 2014 on direct taxes by Institute of Chartered Accountants of India

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Category : Income Tax (25503)
Type : Articles (14970)
Tags : ICAI (2196) section 54 (110) section 54EC (77) Section 54F (132)

0 responses to “ICAI suggests Certification of deductions claimed U/s. 54, 54F, 54EC etc”

  1. B.S.K.RAO says:

    WHERE ICAI (FINANCIALS) TENDING TOWARDS, CORE COMPETENCE & EXPERTISE OF MEMBERS OF ICAI (FINANCIALS) UTILIZED FOR CLERICAL JOB OF ATTESTATION, CERTIFICATION & NOTARY FUNCTIONS. I THINK, GOVT. SHOULD REPLACE CHARTERED ACCOUNTANTS IN PLACE OF NOTARY’S. I SUGGEST ICAI (FINANCIALS) TO CARRYOUT MEANINGFUL JOB, WHICH TAKES THEIR MEMBERS TO NEW HEIGHTS. BECAUSE, MEMBERS OF THE INSTITUTE WILL FIX FOR SUCH JOBS ONLY, WITHOUT UTILIZING THEIR BRAIN. FURTHER, AT LEAST THINK ABOUT OUR NATIONAL INTEREST & INTEREST OF CITIZENS OF INDIA & RELATED PROFESSIONALS. ALSO THINK THAT SUCH ACTION OF YOURS CAUSES STRICT HURDLE FOR VOLUNTARY COMPLIANCE UNDER INDIAN TAXATION LAWS. IN FACT, THERE IS NO SUCH TYPE OF CERTIFICATION PREVAILING IN ANY COUNTRY THROUGHOUT THE WORLD IN REVENUE SIDE. THIS ALSO AMOUNTS TO TAKING AWAY THE INDEPENDENCY OF ASSESSES. SUCH ACTION IS ALSO AGAINST CANNONS OF TAXATION SYSTEM.

  2. chirag sharma says:

    I intimate that about this certification the criteria of CA will more extended, if we note that the all boards like ICAI, ICSI & ICWAI all work to extend their area and provide every time a new idea to getting inbuild its members involvement in any criteria of the commerce field.
    It likes a dependency on such professional, its not a good. Every board goes to parliament and passed its provision and than apply to all the persons of the india, that’s not good. Because we normally knows that all the biggest scam will disclosed even their compulsary audit was exist. So, CA certificate will real do right, i thought its just like icreased power of CA.
    If every board wants to do something good in society and thought that every work should be legal, so I suggest that an idea………
    First all the indian currency will transfer into card system like debit card or credit card, that income tax deptt. having micro chip inbuild in those card and these card will be biomatrix, so that only assesseee will used that.
    Now, every person will received, give any amount to any one that will in the eyes of department.
    Second think, upto present Income tax return will submit by the assessee after that income tax depatt. after completion giving notice to submit tax regarding income to the assessee, because it know every income or expense.

  3. S PRAKASH says:

    JUST BECAUSE THE CERTIFICATION IS MADE IT DOES NOT MEAN THE PERSON MAKING THE CERTIFICATION IS GOD. THE PAST EXPERIENCE SHOWS THAT ALL THE FINANCIAL SCAMS HAVE HAPPENED BECAUSE OF THE THESE CERTIFICATIONS.TRUST THE ASSESSEE SO THAT HE WILL TRUST THE DEPARTMENT.

  4. B S K RAO says:

    WORLD OVER SPECIAL LOGIN TO TAX PROFESSIONALS ALLOWED TO FILE RETURNS ON BEHALF OF ASSESSEES ON ASSIGNING RESPONSIBILITY & ACCOUNTABILITY THROUGH TAX PRACTITIONERS LAW/LEGISLATION. WHEREAS IN INDIA CERTIFICATES AND REPORTS ARE INSERTED IN TAXATION STATUTES WITHOUT ACCOUNTABILITY OF SUCH PERSONS TO THE DEPTT. Ex:- INCOME-TAX DEPTT. UNABLE TO TAKE ACTION ON SUCH PERSONS IN CASE OF SCRUTINY OF TAX AUDIT CASES WHEREIN ADDITIONS ARE NOT DISPUTED OR SUSTAINED IN APPEAL. THIS IS BECAUSE OF DISABILITY IN THE STATUTE BOOK OF INCOME-TAX ACT.

    1. Tax Agent Service Act of Australia
    2. Tax Practitioners Law of South Africa
    3. US Treasury Circular No.230 in the nature of legislation regulating tax professionals practicing before Internal Revenue Service in USA

    THEREFORE, IT IS SUGGESTED TO OUR ESTEEMED CENTRAL GOVT. TO COME OUT WITH SUBORDINATE LEGISLATION, INTRODUCE TAX PRACTITIONERS BILL COVERING ALL TAX PROFESSIONALS OF INDIA. SUCH TAX PRACTITIONERS BILL SHOULD BE INTRODUCED WITH PREAMBLE THAT MAJORITY OF PERSONS PRACTICING TAX LAW IN INDIA ARE NON-ADVOCATES, IN ORDER TO PROTECT THEM AND ALSO IN THE INTEREST OF GOVT. REVENUE, THIS TAX PRACTITIONERS BILL HAS BEEN INTRODUCED. THEN SUCH TAX PRACTITIONERS LAW CAN NOT BE STRUCK DOWN IN VIEW OF LATEST SUPREME COURT VERDICT IN THE CASE OF BAR COUNCIL OF INDIA VS A.K.BALAJI.

  5. B S K RAO says:

    WHERE ICAI (FINANCIALS) TENDING TOWARDS, CORE COMPETENCE & EXPERTISE OF MEMBERS OF ICAI (FINANCIALS) UTILIZED FOR CLERICAL JOB OF ATTESTATION, CERTIFICATION & NOTARY FUNCTIONS. I THINK, GOVT. SHOULD REPLACE CHARTERED ACCOUNTANTS IN PLACE OF NOTARY’S. I SUGGEST ICAI (FINANCIALS) TO CARRYOUT MEANINGFUL JOB, WHICH TAKES THEIR MEMBERS TO NEW HEIGHTS, INSTEAD OF GIVING ABOVE SUGGESTION TO GOVT. BECAUSE, MEMBERS OF YOUR INSTITUTE WILL FIX FOR SUCH JOBS ONLY, WITHOUT UTILIZING THEIR BRAIN. FURTHER, AT LEAST THINK ABOUT OUR NATIONAL INTEREST & INTEREST OF CITIZENS OF INDIA & RELATED PROFESSIONALS. ALSO THINK THAT SUCH ACTION OF YOURS CAUSES STRICT HURDLE FOR VOLUNTARY COMPLIANCE UNDER INDIAN TAXATION LAWS. IN FACT, THERE IS NO SUCH TYPE OF CERTIFICATION PREVAILING IN ANY COUNTRY THROUGHOUT THE WORLD IN REVENUE SIDE. THIS ALSO AMOUNTS TO TAKING AWAY THE INDEPENDENCY OF ASSESSES. SUCH ACTION IS ALSO AGAINST CANNONS OF TAXATION SYSTEM.

  6. MANDEEP SINGH says:

    Its wrong to blame honesty of indian assessees . How can we say that CA’s are doing their duty with honesty when they audit the accounts of assessees. I want to ask why 95% cases are audit cases u/s 44AB in which department made additions more than 2 lac.
    I STRONGLY CONDEMN THE SUGGESTION as shown ( It is suggested that the assessee claiming deduction exceeding a specified amount under the provisions of section 54, 54F, 54EC etc.)IT IS WRONG TO BLAME HONESTY OF INDIAN ASSESSEES FOR GIVEN FULL EMPLOYMENTS TO ITS MEMBERS.

  7. RiddhiSiddhi says:

    Its full harassment to Indian Citizen Assessesee who wants to voluntarily comply with the provisions of Income Tax Acts… need to seriously addressed by the Government, CBDT…

    Simplify Taxation Procedures in the interest of Nation as whole & not to complicate it any more by adding totally unnecessary Audit (which is also not faithful many times) Provisions for the undue advantage of any body..

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