The current guidelines for Income Tax, IT, scrutiny for companies would soon be replaced, with a similiar set of new guidelines, with one exception.
IT Department will now scrutinise all companies where INTL transactions have exceeded Rs 5 crore. Also, all companies entering international transactions, exceeding Rs 5 crore will be scrutinised.
These rules would apply to all banks, PSUs, NSE 500 and BSE A-grade companies. As per Central Board of Direct Taxes, CBDT guidelines, the IT department, has to scrutinise all of them.
Tax experts are happy that most norms are the same, thereby ensuring continuity. But they say that the limit for international transactions should have been much higher, specially since the IT Act defines international transactions, to include transactions between associated enterprises.
