Category: Income Tax

CBDT amends rule 8AA & insert new Rule 8AB Notification No. 76/2021 dated 02 July 2021

Posted on by Business So Simple in Income Tax

CBDT issued Notification No. 76/2021 dated 2nd July, 2021 amends rule 8AA which relates to Method of determination of period of holding of capital assets in certain cases and added rules related to amount which is chargeable to income-tax as income of specified entity under sub­section (4) of section 45 under the head Capital gains.

Notification inserted new Rule 8AB related to Attribution of income taxable under sub-section (4) of section 45 to the capital assets remaining with the specified entity, under section 48 alongwith  form namely ‘Details of amount attributed to capital asset remaining with the specified entity’

Download copy of Notification :

Click to access notification_76_2021.pdf

Click to access notification_76_2021.pdf

Guidelines under section 194Q of the Income-tax Act, 1961 – CBDT Circular dated 30 June 2021

Posted on by Business So Simple in Income Tax

Finance Act, 2021 inserted a new section 194Q in the Income-tax Act 1961 (hereinafter referred to as “the Act”) which takes effect from I st day of July, 202 I. It applies to any buyer who is responsible for paying any sum to any resident seller for purchase of any goods of the value or aggregate of value exceeding fifty lakh rupees in any previous year. The buyer, at the time of credit of such sum to the account of the seller or at the time of payment, whichever is earlier, is required to deduct an amount equal to 0.1 % of such sum exceeding fifty lakh rupees as income tax.

Buyer is defined to be person whose total sales or gross receipts or turnover from the business carried on by him exceed ten crore rupees during the financial year immediately preceding the financial year in which the purchase of good is carried out. Central Government has been authorised to specify by notification in the Official Gazette, person who would not be considered as buyer for the purposes ofthis section.

Sub-section (3) of section 194Q of the Act empowers the Board (with the approval of the Central Government) to issue guidelines for the purpose of removing difficulties. Various representations have been received by the Board for issuing guidelines for removing certain difficulties. In exercise of power contained under sub-section (3) of section 194Q of the Act, the Board, with the approval of the Central Government, hereby iss’ues the following guidelines. These guidelines at some places have also tried to remove difficulties in implementing the provisions of section 194-0 and sub-section (I H) of section 206C of the Act using power contained in sub-section (4) of section 194-0 of the Act and sub-section (II) of section 206C of the Act.

Refer YouTube video link on Guidelines under section 194Q of the Income-tax Act, 1961Circular No. 13 of 2021 | Dated: 30th June, 2021 https://www.youtube.com/watch?v=STkfUwABAtc

Issue clarified under guidelines

1. Applicability on transactions carried through various Exchanges

2. Calculation of threshold for the financial year 2021-22

3. Adjustment for GST, purchase returns

4. Whether non-resident can be buyer under section 194Q of the Act?

5. Whether tax is to be deducted when the seller is a person whose income is exempt

6. Whether tax is to be deducted on advance payment?

7. Whether provisions of section 194Q of the Act shall apply to buyer in the year of incorporation?

8. Whether provisions of section 194Q of the Act shall apply to buyer if the turnover from business is 10 crore or less?

9. Cross application of section 194-0, sub-section (111) of section 206C and section 194Q of the Act.

Refer copy of circular:

‘itat e-dwar’, an e-filing portal of Income Tax Appellate Tribunal launched today

Posted on by Business So Simple in Income Tax, International Taxation

Law Minister Shri Ravi Shankar Prasad launches ‘itat e-dwar’, an e-filing portal of Income Tax Appellate Tribunal


Portal will enable online filing of Appeals, Applications, documents etc. by various parties

Cases of  Income Tax Appellate Tribunal should be integrated in National Judicial Data Grid: Shri Ravi Shankar Prasad

Posted Date:- Jun 25, 2021

Shri Ravi Shankar Prasad, Union Minister for Law & Justice, Communications and Electronics & IT, formally launched the e-filing portal of Income Tax Appellate Tribunal (ITAT), ‘itat e-dwar’, at 04.00 pm today, the 25 June 2021 in New Delhi. 

Launching the Portal, the Minister explained the power of Digital India.  He said Digital India means empowering an ordinary Indian with the power of technology – To bridge the digital divide between the digital haves and the digital have nots leading to digital inclusion achieved by technology, which is low cost, home grown and developmental.  Digital India means a framework for transforming India with the power of technology. He highlighted that nearly 129 crore of the Indian population are enrolled for Aadhar which is the digital identity to supplement one’s physical identity.  Nearly 40 crore bank accounts have been opened for the poor and linked to Aadhar.  Using the power of Digital India about Rs.16.7 lakh crore has been transferred to the account of the poor as Direct Benefit Transfer, saving Rs.1.78 lakh crores which was, otherwise, being siphoned off by middlemen.  Digital India has positioned our country as a world leader in digital payments.  It needs to be highlighted that Aadhar, DBT, UPI and the health scheme, Ayushman Bharat, all are ‘made in India’. Another milestone achievement of Digital India is the establishment of Common Service Centres, which were only 75,000 in number in 2014, now stand at 4lakh.  CSCs provide several services that are citizen centric and the Minister suggested that the lawyers must associate themselves in tendering legal advice to the needy through Tele Law programme, through the CSCs.  Nearly 9 lakh advices were given during the last 4 years though Tele Law. 

The Minister detailed how during the pandemic and the lockdown that ensued the Judiciary functioned through digital means and heard more than one crore cases.  He stated that data about more than 18 crore cases are available in the National Judicial Data Grid (NJDG) and he suggested that cases of ITAT should also be integrated in the NJDG. He pointed out that VC facility has been provided in more than 800 jails so that the undertrials are able to appear before the Courts without the police having to bring them physically to the courts.

He further cautioned that this initiative of ITAT must not be seen as a solitary step.  Instead, it should be seen as a larger narrative of transformation that the country is undergoing through digital medium.  It enables innovation and empowerment and opens new avenues for growth.  He expressed hope that ‘itat e-dwar’ will be widely accepted by the lawyers and tax litigants alike.

On this occasion, a virtual function was organized at the national level which was attended by the functionaries of ITAT from all the 28 stations.  The members of various Bar Associations also joined the virtual function.  It was also attended by the Officers of the Income Tax Department, Chartered Accountants, Taxpayers and other legal luminaries in the field of tax, from across the country.

Justice P.P. Bhatt, President of ITAT, on this occasion, informed the gathering that the launch of e-Filing Portal ‘itat e-dwar’ will enhance the accessibility, accountability and transparency in the day to day working of the ITAT.  It would not only result in economization of the use of paper, savings in costs but also rationalization of the fixation of cases leading to quicker disposal of cases.  On this occasion, Justice Bhatt also announced a plan to set up paperless courts in the ITAT with a pilot project being undertaken at Delhi Benches of ITAT.  It was also informed that even during the period of Pandemic, by using the tools of information and communication technology, various benches of ITAT have functioned and kept up its activity of judicial dispensation.  It was revealed that inspite of the restricted functioning of Benches, the adoption of Video Conferencing has brought down the pendency of cases to about 64,500 as against 88,000 on 1st April, 2020.

The newly developed e-Filing Portal would enable the parties to file their Appeals, Miscellaneous Applications, documents, paper books, etc., electronically. 

On this occasion, Shri Anoop Kumar Mendiratta, Union Law Secretary also addressed and congratulated the ITAT for the initiative taken by it developing the new e-Filing Portal.  Shri G.S. Pannu, Vice President (Delhi Zone) and Chairman, Computerization Committee, ITAT explained that with the combination of digital court room, virtual hearings and Mobile Application providing Judicial Information, paperless courts will soon be a reality in ITAT.

Ministry of Law & Justice Press release 25 June 2021

Government grants further extension in timelines of compliances & tax exemption for expenditure on COVID-19 treatment and ex-gratia received on death due to COVID-19

Posted on by Business So Simple in Income Tax

Ministry of Finance issued Press release today, 25th June 2021 further extending timelines of compliances & tax exemption for expenditure on COVID-19 treatment and ex-gratia received on death due to COVID-19.

The Government has granted further extension of timelines of compliances under Income Tax Act. It has also announced tax exemption for expenditure on COVID-19 treatment and ex-gratia received on death due to COVID-19. The details are as follows:

A.             Tax exemption

  1. Many taxpayers have received financial help from their employers and well-wishers for meeting their expenses incurred for treatment of Covid-19. In order to ensure that no income tax liability arises on this account, it has been decided to provide income-tax exemption to the amount received by a taxpayer for medical treatment from employer or from any person for treatment of Covid-19 during FY 2019-20 and subsequent years.
  2. Unfortunately, certain taxpayers have lost their life due to Covid-19. Employers and well-wishers of such taxpayers had extended financial assistance to their family members so that they could cope with the difficulties arisen due to the sudden loss of the earning member of their family. In order to provide relief to the family members of such taxpayer, it has been decided to provide income-tax exemption to ex-gratia payment received by family members of a person from the employer of such person or from other person on the death of the person on account of Covid-19 during FY 2019-20 and subsequent years. The exemption shall be allowed without any limit for the amount received from the employer and the exemption shall be limited to Rs. 10 lakh in aggregate for the amount received from any other persons.

                 Necessary legislative amendments for the above decisions shall be proposed in due course of time.

B.             Extension of Timelines

                 In view of the impact of the Covid-19 pandemic, taxpayers are facing inconvenience in meeting certain tax compliances and also in filing response to various notices. In order to ease compliances to be made by taxpayers during this difficult time, reliefs are being provided through Notifications nos. 74/2021 & 75/2021 dated 25th June, 2021 Circular no. 12/2021 dated 25th June, 2021. These reliefs are:

  1. Objections to Dispute Resolution Panel (DRP) and Assessing Officer under section 144C of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for which the last date of filing under that section is 1st June, 2021 or thereafter, may be filed within the time provided in that section or by 31st August, 2021, whichever is later.
  2. The Statement of Deduction of Tax for the last quarter of the Financial Year 2020-21, required to be furnished on or before 31st May, 2021 under Rule 31A of the Income-tax Rules,1962 (hereinafter referred to as “the Rules”), as extended to 30th June, 2021 vide Circular No.9 of 2021, may be furnished on or before 15th July, 2021.
  3. The Certificate of Tax Deducted at Source in Form No.16, required to be furnished to the employee by 15th June, 2021 under Rule 31 of the Rules, as extended to 15th July, 2021 vide Circular No.9 of 2021, may be furnished on or before 31st July, 2021.
  4. The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64D for the Previous Year 2020-21, required to be furnished on or before 15th June, 2021 under Rule 12CB of the Rules, as extended to 30th June, 2021 vide Circular No.9 of 2021, may be furnished on or before 15th July, 2021.
  5. The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64C for the Previous Year 2020-21, required to be furnished on or before 30th June, 2021 under Rule 12CB of the Rules, as extended to 15th July, 2021 vide Circular No.9 of 2021, may be furnished on or before 31st July, 2021.
  6. The application under Section 10(23C), 12AB, 35(1)(ii)/(iia)/(iii) and 80G of the Act in Form No. 10A/ Form No.10AB, for registration/ provisional registration/ intimation/ approval/ provisional approval of Trusts/ Institutions/ Research Associations etc., required to be made on or before 30th June, 2021, may be made on or before 31st August, 2021.
  7. The compliances to be made by the taxpayers such as investment, deposit, payment, acquisition, purchase, construction or such other action, by whatever name called, for the purpose of claiming any exemption under the provisions contained in Section 54 to 54GB of the Act, for which the last date of such compliance falls between 1st April, 2021 to 29th September, 2021 (both days inclusive), may be completed on or before 30th September, 2021.
  8. The Quarterly Statement in Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30th June, 2021, required to be furnished on or before 15th July, 2021 under Rule 37 BB of the Rules, may be furnished on or before 31st July, 2021.
  9. The Equalization Levy Statement in Form No. 1 for the Financial Year 2020-21, which is required to be filed on or before 30th June, 2021, may be furnished on or before 31st July, 2021.
  10. The Annual Statement required to be furnished under sub-section (5) of section 9A of the Act by the eligible investment fund in Form No. 3CEK for the Financial Year 2020-21, which is required to be filed on or before 29th June, 2021, may be furnished on or before 31st July, 2021.
  11. Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending 30th June, 2021, which is required to be uploaded on or before 15th July, 2021, may be uploaded by 31st August,2021.
  12. Exercising of option to withdraw pending application (filed before the erstwhile Income Tax Settlement Commission) under sub-section (1) of Section 245M of the Act in Form No. 34BB, which is required to be exercised on or before 27th June, 2021, may be exercised on or before 31st July, 2021.
  13. Last date of linkage of Aadhaar with PAN under section 139AA of the Act, which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.
  14. Last date of payment of amount under Vivad se Vishwas(without additional amount) which was earlier extended to 30th June, 2021 is further extended to 31st August, 2021.
  15. Last date of payment of amount under Vivad se Vishwas (with additional amount) has been notified as 31st October, 2021.
  16. Time Limit for passing assessment order which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.
  17. Time Limit for passing penalty order which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.
  18. Time Limit for processing Equalisation Levy returns which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.

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Never forget Income tax due date for Month of June 2021

Posted on by Business So Simple in Income Tax

Income tax due date reminder for June 2021

Due Dates for June 2021

  • 30 June 2021 – Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA in the month of May, 2021
  • 30 June 2021 – Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IB in the month of May, 2021
  • 30 June 2021 – Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194M in the month of May, 2021
  • 30 June 2021 – Return in respect of securities transaction tax for the financial year 2020-21
  • 30 June 2021 – Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in respect of the quarter ending March 31, 2021
  • 30 June 2021 – Statement to be furnished (in Form No. 64C) by Alternative Investment Fund (AIF) to units holders in respect of income distributed during the previous year 2020-21The due date for furnishing of statement in Form no. 64C has been extended from June 30, 2021 to July 15, 2021 vide Circular no. 9/2021, dated 20-05-2021
  • 30 June 2021 – Report by an approved institution/public sector company under Section 35AC(4)/(5) for the year ending March 31, 2021
  • 30 June 2021 – Due date for furnishing of statement of income distributed by business trust to its unit holders during the financial year 2020-21. This statement is required to be furnished to the unit holders in form No. 64B
  • 30 June 2021 – Due date for linking of Aadhaar number with PANThe due date for linking Aadhaar number with PAN has been extended from March 31, 2021 to June 30, 2021 vide Notification S.O. 1432(E), dated 31-03-2021
  • 30 June 2021 – Payment of tax under the Direct Tax Vivad se Vishwas Act, 2020 without additional chargeThe due date for payment of tax under the Direct Tax Vivad se Vishwas Act, 2020 without additional charge has been extended to June 30, 2021 vide Notification S.O. 1704 (E), dated 27-04-2021
  • 30 June 2021 – Due date for furnishing of Form 24G by an office of the Government where TDS/TCS for the month of May, 2021 has been paid without the production of a challanThe due date for furnishing of Form 24G for month of May, 2021 has been extended from June 15, 2021 to June 30, 2021 vide Circular no. 9/2021, dated 20-05-2021
  • 30 June 2021 – Quarterly statement of TDS deposited for the quarter ending March 31, 2021The due date for furnishing of quarterly statement of TDS has been extended from May 31, 2021 to June 30, 2021 vide Circular no. 9/2021, dated 20-05-2021
  • 30 June 2021 – Due date for furnishing of statement of financial transaction (in Form No. 61A) as required to be furnished under sub-section (1) of section 285BA of the Act respect for financial year 2020-21The due date for furnishing statement of financial transaction for financial year 2020-21 has been extended from May 31, 2021 to June 30, 2021 vide Circular no. 9/2021, dated 20-05-2021
  • 30 June 2021 – Due date for e-filing of annual statement of reportable accounts as required to be furnished under section 285BA(1)(k) (in Form No. 61B) for calendar year 2020 by reporting financial institutionsThe due date for furnishing statement of reportable accounts for calendar year 2020 has been extended from May 31, 2021 to June 30, 2021 vide Circular no. 9/2021, dated 20-05-2021
  • 30 June 2021 – Return of tax deduction from contributions paid by the trustees of an approved superannuation fundThe due date for furnishing return of tax deduction has been extended from May 31, 2021 to June 30, 2021 vide Circular no. 9/2021, dated 20-05-2021
  • 30 June 2021 – Furnishing of statement (in Form No. 64D) of income paid or credited by an investment fund to its unit holder for the Previous year 2020-21The due date for furnishing of statement in Form no. 64D has been extended from June 15, 2021 to June 30, 2021 vide Circular no. 9/2021, dated 20-05-2021

29 June 2021 – Due date for e-filing of a statement (in Form No. 3CEK) by an eligible investment fund under section 9A in respect of its activities in financial year 2020-21

15 June 2021 – Furnishing of statement (in Form No. 64D) of income paid or credited by an investment fund to its unit holder for the Previous year 2020-21The due date for furnishing of statement in Form no. 64D has been extended from June 15, 2021 to June 30, 2021 vide Circular no. 9/2021, dated 20-05-2021

15 June 2021 – Due date for furnishing statement in Form no. 3BB by a stock exchange in respect of transactions in which client codes been modified after registering in the system for the month of May, 2021

  • 15 June 2021 – Due date for furnishing of Form 24G by an office of the Government where TDS/TCS for the month of May, 2021 has been paid without the production of a challanThe due date for furnishing of Form 24G for month of May, 2021 has been extended from June 15, 2021 to June 30, 2021 vide Circular no. 9/2021, dated 20-05-2021
  • 15 June 2021 – Quarterly TDS certificates (in respect of tax deducted for payments other than salary) for the quarter ending March 31, 2021
  • 15 June 2021 – First instalment of advance tax for the assessment year 2022-23
  • 15 June 2021 – Certificate of tax deducted at source to employees in respect of salary paid and tax deducted during Financial Year 2020-21The due date for issue of certificate of TDS in respect tax deducted from the salary paid during the Financial Year 2020-21 has been extended from June 15, 2021 to July 15, 2021 vide Circular no. 9/2021, dated 20-05-2021
  • 14 June 2021 – Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of April, 2021
  • 14 June 2021 – Due date for issue of TDS Certificate for tax deducted under Section 194-IB in the month of April, 2021
  • 14 June 2021 – Due date for issue of TDS Certificate for tax deducted under Section 194M in the month of April, 2021
  • 7 June 2021 – Due date for deposit of Tax deducted/collected for the month of May, 2021. However, all sum deducted/collected by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan

Income Tax Department conducts searches in Raipur

Posted on by Business So Simple in Income Tax

Specific actionable intelligence was received by the Income Tax Department that a set of people were to carry out an outside-the-books cash transaction of a substantial amount at Raipur, Chhattisgarh. Upon further investigations, the input was found to be credible and the hawala dealer was identified.

As a result, the Department carried out search and seizure action on 21.06.2021 on a Raipur based hawala operator. Four premises at Raipur were covered in the action. The modus operandi involved not only giving accommodation entries of sale, purchase etc to people, but also transportation and end-use facilitation of unaccounted money.

During the course of the search, unaccounted cash amounting to approximately Rs. 6 crore has been seized. A number of digital devices in the form of a computer hard disc and pen drives having details of hawala transactions have been seized. The same are being analysed and quantification of the total amount involved is under progress. Preliminary estimates suggest that hawala transactions exceeding Rs. 100 crore may be involved.

Further investigations are in progress.

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MoF press release dated 24 June 2021

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