The Government has issued notifications under Section 168A of the CGST Act, 2017, wherein the time limit for completion of various actions, by any authority or by any person, under the CGST Act, which falls during the specified period, has been extended up to a specific date, subject to some exceptions as specified in the said notifications. In this context, various representations have been received seeking clarification regarding the cognizance for extension of limitation in terms of Hon’ble
In order to track the digital transaction and considering the use of technology in growing economy of India, income tax department has launched new website for electronic filing of returns. The launch of new website is considered as second generation of income tax e-filing and named as income tax e-filing portal - 2.0. The new website was launched on, June 7, 2021, with a host of new features for taxpayers. The new income tax e-filing portal - 2.0 can be accessed at http://www.incometax.gov.in.
In light of the adverse circumstances arising on account of COVID-19 pandemic and considering several requests made by taxpayers, tax consultants and other stakeholders from across the country that various compliance dates may be relaxed, CBDT vide circular 09/2021 dated 20-May-2021 has provided certain relaxations in the below compliance timelines-
In light of the adverse circumstances arising on account of COVID-19 pandemic and considering several requests made by taxpayers, tax consultants and other stakeholders from across the country that various compliance dates may be relaxed, CBDT vide circular 08/2021 dated 30-Apr-2021 has provided certain relaxations in the below compliance timelines-
The Central Board of Direct Taxes (Board), in exercise of its powers u/s 119 of the Income-tax Act,1961 (Act), with an objective of streamlining the process of selection of cases for issue of notices u/s 148 of the Act, hereby directs that the following categories of cases be considered as ‘potential cases’ for taking action u/s 148 of the Act by 31.03.2021 for the A.Y 2013-14 to A.Y 2017-18 by the Jurisdictional Assessing Officer (JAO):
The controversy on taxability foreign software relates to the characterization of income in the hands of the non-resident payee i.e. whether the payments received by the non-resident payee for giving license of computer software is chargeable to tax as ‘royalty’ or it is ‘sale’. The Revenue seeks to tax these payments as royalty and subject to the same to withholding tax, while the non-resident payees seek to label such receipts as business income not chargeable to tax, in the absence of
Section 17(2)(vii) of the Income-tax Act, 1961 (‘ITA’) provides that employer’s contribution to the account of an employee in a recognized provident fund, national pernsion scheme and superannuation fund in excess of ? 750,000 in aggregate for all the three funds shall be treated as perquisite in the hands of the employee and accrodingly, chargeable to tax. Section 17(2)(viia) of the ITA provides that any annual accretion by way of interest, dividend or any other amount of similar nature t
A new Rule 86B has been inserted into CGST Rules, 2017 vide Notification No. 94/2020-Central Tax Dated 22nd December 2020. After the introduction of this new rule, restriction has been imposed on the use of electronic credit ledger. Now, the registered person will be able to use only 99% of the electronic credit ledger balance to discharge his liability towards outward tax. This implies that 1% of liability towards outward tax has to be paid in cash.
CBDT has extended ITR filing due dates for FY 2019-20 (AY 2020-21) as under:ITR Filing Due date for entities subject to tax audit for AY 2020-21 has been extended to 31st January, 2021
With the globalization of businesses, interdependence amongst group companies has increased substantially. Transactions are frequently undertaken to achieve cost efficiency and not necessarily with the intention of making a profit. Some of the prevalent practices include allocation of common costs such as those related to information technology and procurement, cross-charge of personnel and other types of cost sharing arrangements.
The Central Board of Direct Taxes (‘CBDT’) vide notification 82/2020 dated 01.10.2020 has brought in certain amendments with effect from 01.10.2020...
Section 194-O casting an obligation on the e-commerce operator to deduct income-tax at the rate of one percent of the gross amount of sale of goods or provision of services or both, facilitated through its digital or electronic facility or platform, with exemption in case of certain individuals or HUF fulfilling specified conditions, and Section 206(1H) obligating a seller receiving an amount as consideration for sale of any goods of the value or aggregate of such value exceeding fifty lakhs rup
Prime Minister Narendra Modi on 13 August 2020 launched a ‘Transparent Taxation – Honouring the Honest’ platform aimed at easing compliance and expediting refunds, benefitting honest taxpayers. Three main features of the platform are:
If you are a seller whose turnover or gross receipts in previous financial year exceeds INR 10 Crore then effective 1 October 2020, a recently introduced section 206C(1H) regarding TCS (Tax Collected Source) becomes applicable on you.
The finance ministry has proposed new measures to ensure better income tax compliance The proposal includes reporting of transactions like hotel bills above ?20,000, electric bill of over ?1 lakh, etc As part of measures to widen the tax base by increasing compliance, the government has proposed a series of new measures which will bring transactions like paying hotel bills of above ?20,000, buying business class flight tickets, purchase of jewellery above ?1 lakh, etc under the scanner of th
Prime Minister Narendra Modi will launch taxation reforms through - Transparent Taxation - on Thursday, aimed at easing compliance and expediting refunds, benefiting honest taxpayers. The launch of the platform will further carry forward the journey of direct tax reforms, following the several measures that have been taken by the Central Board of Direct Taxes (CBDT) to aid taxpayers. Prime Minister Shri @narendramodi will launch platform for “Transparent Taxation – Honoring the Honest” v
The assessees need to be very careful while reporting the values and giving declarations to the government authorities. There already exists memorandums between various government departments wherein the departments are officially allowed to share the details of assessees from their records. Now, On 8th July 2020, a new Memorandum of Understanding (MOU) has been signed between the Central Board of Direct Taxes (CBDT) and the Securities and Exchange Board of India (SEBI) for data excha
The Indian Government had extended various due dates in the month of March 2020 under the Income Tax Act on account of the covid crisis in the country by issuing the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 (hereinafter referred to as the ‘Ordinance 2020’). Since the crisis has not been fully contained, the Government hereby came out with further relaxations through its notif
Form 26AS is an annual consolidated credit statement issued by the I-T department under section 203AA. The Central Board of Direct Taxes (‘CBDT’) vide notification no. 30/2020 dated 28 May 2020 has replaced Form 26 AS with a comprehensive form with a view to widen the coverage of information available to the taxpayers. On account of this, now a taxpayer will have more information readily available at one place. This statement will act as the Annual Information Statement of the assesses and c
Recently the Union Finance Minister Smt. Nirmala Sitaraman has announced the INR 20 lakh crore economic package to the country wherein the due dates for filing the income tax returns for the AY 2020-21 have also been extended to 30 November 2020. Now the Central Board of Direct Taxes (‘CBDT’) has notified the fresh income tax return forms for the assessment year 2020-21 v
The Direct Tax Vivad se Vishwas Act, 2020 (hereinafter referred to as ‘VsV’) is a Direct Tax Dispute Settlement Scheme which has received the assent of the Honourable President of India on March 17, 2020. Recently a similar scheme was introduced to settle the pending disputes under the Indirect Taxes, post successful results of which, the subject scheme has been launched for settling the disputed cases in the Direct Tax regime. The main objectives of the scheme are-
On account of the global pandemic (here used for Covid-19), the Prime Minister of India, Shri Narendra Modi had announced a 21 Day lockdown on the evening of March 24, 2020 to be observed in the entire nation. Various notifications and orders have since been issued under different finance and tax laws prevailing in India to provide for waivers of late fee / penalty, extension of due dates, reduction in rate of interests etc, inter alia, mainly to address the operational difficulties faced by the
CBDT has recently vide Notification 10 dated February 12, 2020, issued Income-tax (4th Amendment) Rules, 2020, effective from April 01, 2020. As per the amended rules, a person, being a domestic company, exercising an option for a concessional corporate tax rate of 22 percent under sub-section (5) of section 115BAA, for any previous year relevant to the assessment year beginning on or after the 1st day of April 2020, shall need to file Form No. 10-IC. The option in Form No. 10-IC can be exercise
NEW DELHI: West Bengal has emerged as the worst while new Union Territories (UTs) of Jammu & Kashmir (J&K) and Ladakh have notched up an impressive show in ratings prepared for the first time by Centre regarding Direct Benefit Transfer (DBT) payouts. In a surprise in the ratings chart pertaining to 2019-20, the UTs of J&K and Ladakh clubbed together got the number eight spot among 36 states and UTs, reporting DBT payouts worth Rs 1,190 crore through over 80 lakh transactions. ET had reported o
In Budget 2020, Finance Minister Nirmala Sitharaman announced new income tax rates and slabs for those earning up to ?15 lakh a year. These new tax rates are optional and will be applicable for those foregoing exemptions and deductions. The finance minister also proposed to remove dividend distribution tax on companies. These new income tax-related proposa
The Indian economy, which is buffeted with several challenges, is expected to grow 6-6.5 percent in 2020-21, according to the Economic Survey tabled in Parliament on Friday. This GDP growth forecast is seen as somewhat ambitious, given that Indian economy is widely expected to close current fiscal with 5 per cent growth. The latest Economic Survey for 2019-20 was tabled in both Houses of Parliament by Finance Minister Nirmala Sitharaman. Wealth creation goal With 'Wealth Cre
Clarifications on Electronic - In continuance to the declared policy objective of the Government to encourage digital economy and move towards a less-cash economy, a new provision namely Section 269SU was passed in the Income-tax Act 1961, vide the Finance (No. 2) Act 2019, which offers that every person having a company turnover of more than Rs. 50 Crore shall mandatorily provide facilities for accepting payments through prescribed electronic modes. Moreover, a new provision n
NEW DELHI: Over 3.4 lakh investors dealing in listed equity shares and mutual funds are suspected to have evaded or not reported long-term capital gains tax, an analysis by the income tax department showed, prompting authorities to dismiss demands for the abolition of the levy introduced two years ago. Data analysis on the impact of LTCG, showed that during 2018-19, around 91,000 individuals and Hindu Undivided Families (HUFs), or 16%, dealing in listed shares and mutual funds who sold listed s
In furtherance to the declared policy objective of the Government to encourage digital economy and move towards a less-cash economy, a new provision namely Section 269SU was inserted in the Income-tax Act 1961, vide the Finance (No. 2) Act 2019, which provides that every person having a business turnover of more than Rs. 50 Crore during the immediately preceding previous year shall mandatorily provide facilities for accepting payments through prescribed electronic modes. Further, a new provisio
Corporate tax Cut: The government is estimating a hit of around Rs 1 lakh crore due to a reduction in corporation tax, against Rs 1.45 lakh crore calculated when the move was announced in September. Official said this estimate was based on an analysis of advance tax payments and will provide much-needed cushion to the Centre, which is battling an acute fiscal strain, with tax collections expected to be significantly lower than the budget estimate of Rs 24.6 lakh crore on gros
NEW DELHI: The issue of interim dividend may come up for discussion in the next RBI board meeting as the government struggles to meet its ambitious fiscal deficit target of 3.3 per cent amid revenue shortfall, sources said. Government finances have come under pressure due to moderation in revenue collection and a slew of measures taken to lift growth from over six-year-low of 4.5 per cent in the second quarter of the current fiscal. As per the government's estimate, the country's GDP growth is
Infusion for PSU - The government is unlikely to announce capital infusion for the public sector banks (PSBs) in the upcoming Budget and will rather encourage them to expedite recovery of bad loans and raise funds from the market. Besides, sources said, banks may also look for divesting or selling their non-core business as part of fund raising exercise during 2020-21. Finance Minister Nirmala Sitharaman is expected to present the second budget of the Modi 2.0 government on 1 February .
Recently CBDT has vide notified Notification No. 104/2019 dated December 18, 2019, revised FORM No. 10DA under rule 19AB of Income Tax Rules vide. Form 10DA contains the format of the report prescribed under section 80JJAA of the Income-tax Act, 1961 (‘the Act’). Form 10 DA has been prescribed in accordance with Rule 19 AB of Income Tax Rules 1962 and is part of Appendix II of the aforesaid Rules. Form 10 DA contains the report to be given by a practicing chartered acco
Income Tax Scrutiny - In the recent ongoing scrutiny assessments for financial year 2016-17, one of the main items of verification, particularly in cases of individual taxpayers, has been that of the source of cash deposited by taxpayers in their bank accounts. The rationale for this is the fact that large cash deposits were made during the year by many taxpayers at the time of demonetization. What is the implication if one is not able to explain such cash deposits? Tax is leviable on such depo
Finance minister Nirmala Sitharaman on Saturday indicated that the government may soon relax the personal income tax burden to provide relief to individuals and boost consumption by putting more money in the hands of people. The relief, if provided, will come amid a downturn in the economy led by tepid demand and sluggish private investment. “(A cut in personal income tax) One among the many things we are looking at," the minister said at the Hindustan Times Leadership Summit 2019 in the nati
Implications of Withholding tax - Withholding tax is an amount that is deducted directly from the employee’s income by the employer and paid to the government as a part of a person’s tax liability. These taxes are directly paid to the central government of India. In India, the Central Government is accountable and authorized to collect taxes and the Tax is usually charged based on the salary of an individual. How is Withholding Tax calculated? The i
In its bid to increase tax compliance, the income tax department has now launched a new campaign to convince all those who did not file their income tax return (ITR) for the last financial year to do it now. The tax department keeps a track of all those who skip filing their ITR in a subsequent year. In an e-mail message to all those who didn't file their ITR for FY 2017-18 or AY 2019-20, the tax department's message reads, "We missed you. You've been a regular filer. However, we couldn't help
The government is considering changes to its dividend distribution tax that will raise returns for investors, according to people familiar with the matter, as authorities try to revive foreign fund inflows. The budget statement due February will probably include a proposal to tax dividends once they are paid to shareholders, rather than the current system where the company pays the levy, the people sa
For homebuyers, Income tax Rebate on Housing Loan: Real Estate sector, and housing finance companies, there is some great news in offing, says this exclusive Zee Business TV report, citing Finance Ministry sources. In a big boost for the real estate sector, it has been revealed , that it may get infrastructure sector status! And that too as a pre-budget gift! Sources revealed that the issue is under discussion. When will this happen? As early as the new year itself! This will come as a big boost
Income Tax Calculator 2019: Those who prepare first are always in front of the line when it comes to making wealth and getting rich. So, if you want to save your money, you need to start preparing for tax season here and now. For that, you should be well aware of changes made by government and how they impact you. The best way to do that is through the Income Tax Calculator 2019. Notably, in her Union Budget speech on July 5th, Finance Minister Nirmala Sitharaman had proposed to hike the surcha
IMF Supports India's Corporate Tax - India should address continued fiscal consolidation, the International Monetary Fund (IMF) said. Washington: The International Monetary Fund on Friday supported India's recent decision to reduce corporate income tax, saying it has a positive impact on investment. It, however, said India should address continued fiscal consolidation and secure long-term stability of the fiscal con
Income tax raids on Properties - Income Tax officials from Tamil Nadu on Wednesday conducted simultaneous raids at the premises of Kalki Bhagwan, a self-styled godman, in Andhra Pradesh, Telangana, Karnataka and Tamil Nadu. Kalki, who is the founder of Oneness University, a spiritual school, also saw searches being conducted at his main ashram in Varadaiahpalem of Chittoor district in Andhra on Wednesday. I-T sleuths cordoned off the premises and seized several documents, besides the mobile ph
NEW DELHI : Crorepati taxpayers in India - If data from the income tax department's records is taken into account, India had more than 97,000 people earning a taxable income of over ?1 crore in the financial year 2017-18. The Central Board of Direct Taxes (CBDT) has now come out with a detailed break-up of data collected from income tax returns (ITR). According to the report, the number of crorepati taxpayers in India shot up 20% to 97,689 during assessment year 2018-19 or FY 2017-18. The numbe
MUMBAI: Indian tax officials are pushing back against Prime Minister Narendra Modi's new faceless tax assessment programme, complaining about a lack of consultation and inadequate resources to implement the changes, a letter reviewed by Reuters shows. ET Daily Rundown: The woes of faceless tax assessment & more Making the biggest recent reform of tax collection methods, the government introduced faceless assessment this month, but resistance to change from within the bureaucracy could lead to
Mumbai|New Delhi: Digital multinationals such as Facebook, Google, Uber and LinkedIn with operations in the country may create new domestic companies, change the ownership pattern to become compliant with new tax laws that the country may frame in the wake of a global agreement on taxation of such multinationals. India, with other members of the Organisation for Economic Cooperation and Development (OECD), is planning
On September 20, Finance Minister (FM) Nirmala Sitaraman delivered a pleasant surprise to India Inc. by slashing corporate taxes in order to bolster the sagging Indian economy. Much to the surprise of bears, the stock market which was reeling under pressure till then, witnessed a huge short-covering rally, which led to massive up move on the bourses. The massive upmove was never recorded in recent history with a gain of around 10 percent in benchmark indices in just two sessions. In haste, ev
New Delhi, September 26: Twenty-four days after the closing of Income Tax (IT) filing date, the IT department has identified about 4,00,000 taxpayers who are all set to face scrutiny under the new faceless assessment scheme. The department stated that they have already served notice to over 1,00,000 assessees, asking them to explain on the returns filed within 15 days. The deadline for sending scrutiny letters is September 30. According to a report published in the
The task force on direct tax has reportedly recommended substantial cuts in income tax slabs for individual taxpayers in order to boost demand. Apart from slashing income tax rates, the report also suggested dropping surcharges and cess levied on income taxes, CNBC-TV18 reported. The new direct tax report called for a 10 per cent income tax rate for individuals earning Rs 5-10 lakh per year, CNBC-TV18 quoted sources as saying. Presently, this tax bracket attracts 20 per cent income tax. The di
Finance minister Nirmala Sitharaman said on Sunday the government's decision to reduce the corporate tax rate for new manufacturing companies to 15% has turned India into an attractive investment destination for firms that want to relocate supply chains from China, including Apple and its component manufacturers. The finance minister on Friday announced the reduction of the corporate tax rate for domestic manufacturing companies from 30% to 22% and for new manufacturing firms from 25% to 15% in
In the current scenario, the International business is changing at a very fast pace and this alteration in business has brought several modifications in the structure, function, and taxation of a company. International Taxation consulting firms aid companies in meeting the international tax requirements which shall be beneficial for an organization to grow in the global market. ASC consists of Experts from various fields’ and industries having vast knowledge about Indian and
Only after the verification of ITRs, the income tax department starts processing it You can verify your ITR offline as well as online Out of over 5.65 crore income tax returns (ITRs) filed up to 31st August this year, only 3.61 crore ITRs have been verified, according to latest information from the income tax department. This means that over 2 crore income tax filers are yet to verify their ITRs. If the ITRs are not verified, they are treated as invalid returns b
New Delhi: People earning between Rs 5 lakh and 10 lakh per year may have to pay 10% income tax, if the recommendations of a high-level tax force set up by the government are accepted. The task force on direct taxes has proposed radical changes in personal income tax slabs, according to the recommendations accessed by CNBC-TV18. The proposals include lowering the personal income tax for those earning betwee
According to media reports, the government is in talks with the markets regulator to get details of investment returns of taxpayers. The pre-filled forms will have salary break-up from Form 16. ITR Filing: In order to make filing of income tax returns easier, information on capital gains from equities or debt-related investments, dividend from mutual funds, interest on bank deposits and savings accounts or other incomes from investments will soon be a part of the pre-fill
For income tax purpose, a senior citizen is an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year. Today is the Senior Citizen day. World over the Senior Citizen Day is celebrated on August 21. With increasing life expectancy, people are living longer and the need for longer sustenance is becoming more relevant than in the past. On average, if an individual works for 30 years, the next 30 years could mean n
On the lines of reminders for filing returns, messages could point to transactions while stating that they be ignored if accounted for The proposed changes are part of an overall strategy to position the tax dept as a non-adversarial agency New Delhi: The income tax (I-T) department is planning to adopt 'non-threatnening' language that will ask taxpayers whether or not an expense has been accounted for instead of the intimidating officialese that specifies I
NEW DELHI: A high-level government task force on direct taxes has proposed a rethink on the brackets, review of the surcharges levied on income tax, a regime that encourages startups and a revamp of the I-T Act to make it taxpayer-friendly, said people with knowledge of the matter. It is understood to have suggested changes to the tax brackets, in what could lead to significant relief for the middle and upper middle class; a rate of 25% for both domestic as well as foreign companies, which face
The panel, led by CBDT member Akhilesh Ranjan, was earlier required to submit its recommendations on Friday The new direct tax code will try to simplify tax law provisions, improve certainty and predictability of the law and reduce litigation New Delhi: The much-awaited report on the new direct tax code (DTC), which will replace the existing income tax act of 1961, will be submitted to finance minister Nirmala Sitharamanon Mo
On 21 September 2017, a tax raid was conducted across 20 locations, including Mumbai, Chennai, Bengaluru, and Chikmagaluru by senior officers of the Income Tax Department of Karnataka and Goa regions. The documents seized during raids revealed that Siddhartha had concealed income worth Rs 650 crore from the I-T department. This was the first time Siddhartha fell into controversy and witnessed with his demise on July 30, 2019. The last letter written by Siddhart
Direct taxation is characterized as tax imposed upon the individual who is proposed to be the last conveyor of the burden of payment. Today’s Income Tax is based on direct tax collection, or, in other words, the administration demands taxation on individual or company. Sales Taxes implies that we are compliant to pay them by buying the thing that is being taxed. It is imposed upon a business or business-related activity, not upon people or organizations directly. You decide the amount, purcha
Businesses across the nation are changing with the fast pace with innumerable advancement in terms of technology, market size, and taxes. Mergers and Acquisition are gaining its popularity with an increased number of Businesses and Private corporate house. This in return is putting India into many challenges in regards to taxation which requires sustainable changes to the tax structure. The recent ‘India Tax Talks’, focused on various aspects of taxation such as tax profess
ITR has a prearranged set of IT forms which comprises of income details earned by an individual in a financial year and the amount of taxes paid on specific income. The revised version of ITR forms has made many changes in ITR forms which a taxpayer must cautiously note before filing ITR. According to the newly notified forms, the taxpayer has to provide some additional information such as holdings in unlisted shares, days of residency in India, and details of the buyers of property. Mostly, if
The Budget for the year 2019-20 is here and the team at ASC Group has compiled an analysis of the key takeaways from the budget, especially in respect to Indirect Taxation. We hope this analysis helps you understand the intricacies of the budget. Click here to view the detailed presentation.
Transfer Pricing: Arm’s length principle Transfer Pricing was introduced in India in 2001 and since then it has gone through numerous changes in respect to amendments for the purpose of strengthening the rule. In simple words, if one was to define transfer pricing’s ‘Arm’s Length Principle’
The Finance Minister, Arun Jaitley, announced the Union Budget 2018 on 1st February 2018 with components possessing the potential to have a transformational influence on various sectors of the economy. The current Indian economy has reached US$ 2.5 Trillion and is on its way to becoming the 5th largest in the world. GDP is projected at 7.4 % while the number of taxpayers has increased from 6.4
List of applications admitted by NCLTs under Insolvency and Bankruptcy Code, 2016 with details of public announcements inviting claims
India is fast moving ahead towards increasing the growth trajectory and consolidating foreign investments in India. With this regards, the move towards easy taxation like GST have been proposed, and Transfer Pricing regulations too have been eased down. Given a situation where India has a large volume of inter-company dealings, there exists a huge demand to reform the transfer pricing documentation law. The Union Government of Finance Ministry in India made several proposals for amendments and
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