Category: News Desk

Updates on Income tax, GST, Company Law, SEBI, FEMA, FCRA

Introduce Yourself (Example Post)

Posted on by Business So Simple in Miscellaneous

This is an example post, originally published as part of Blogging University. Enroll in one of our ten programs, and start your blog right.

You’re going to publish a post today. Don’t worry about how your blog looks. Don’t worry if you haven’t given it a name yet, or you’re feeling overwhelmed. Just click the “New Post” button, and tell us why you’re here.

Why do this?

  • Because it gives new readers context. What are you about? Why should they read your blog?
  • Because it will help you focus your own ideas about your blog and what you’d like to do with it.

The post can be short or long, a personal intro to your life or a bloggy mission statement, a manifesto for the future or a simple outline of your the types of things you hope to publish.

To help you get started, here are a few questions:

  • Why are you blogging publicly, rather than keeping a personal journal?
  • What topics do you think you’ll write about?
  • Who would you love to connect with via your blog?
  • If you blog successfully throughout the next year, what would you hope to have accomplished?

You’re not locked into any of this; one of the wonderful things about blogs is how they constantly evolve as we learn, grow, and interact with one another — but it’s good to know where and why you started, and articulating your goals may just give you a few other post ideas.

Can’t think how to get started? Just write the first thing that pops into your head. Anne Lamott, author of a book on writing we love, says that you need to give yourself permission to write a “crappy first draft”. Anne makes a great point — just start writing, and worry about editing it later.

When you’re ready to publish, give your post three to five tags that describe your blog’s focus — writing, photography, fiction, parenting, food, cars, movies, sports, whatever. These tags will help others who care about your topics find you in the Reader. Make sure one of the tags is “zerotohero,” so other new bloggers can find you, too.

Introduce Yourself (Example Post)

Posted on by Business So Simple in Miscellaneous

This is an example post, originally published as part of Blogging University. Enroll in one of our ten programs, and start your blog right.

You’re going to publish a post today. Don’t worry about how your blog looks. Don’t worry if you haven’t given it a name yet, or you’re feeling overwhelmed. Just click the “New Post” button, and tell us why you’re here.

Why do this?

  • Because it gives new readers context. What are you about? Why should they read your blog?
  • Because it will help you focus your own ideas about your blog and what you’d like to do with it.

The post can be short or long, a personal intro to your life or a bloggy mission statement, a manifesto for the future or a simple outline of your the types of things you hope to publish.

To help you get started, here are a few questions:

  • Why are you blogging publicly, rather than keeping a personal journal?
  • What topics do you think you’ll write about?
  • Who would you love to connect with via your blog?
  • If you blog successfully throughout the next year, what would you hope to have accomplished?

You’re not locked into any of this; one of the wonderful things about blogs is how they constantly evolve as we learn, grow, and interact with one another — but it’s good to know where and why you started, and articulating your goals may just give you a few other post ideas.

Can’t think how to get started? Just write the first thing that pops into your head. Anne Lamott, author of a book on writing we love, says that you need to give yourself permission to write a “crappy first draft”. Anne makes a great point — just start writing, and worry about editing it later.

When you’re ready to publish, give your post three to five tags that describe your blog’s focus — writing, photography, fiction, parenting, food, cars, movies, sports, whatever. These tags will help others who care about your topics find you in the Reader. Make sure one of the tags is “zerotohero,” so other new bloggers can find you, too.

Income tax implications on Cash Loan/Deposits/Advances (Section 269SS)

Posted on by Business So Simple in Miscellaneous

Income tax implications
on
Cash Loan/Deposits/Advances

Bipul Kumar
Business Consultant
Contact us: 9304027546, 9560084833
Email: rsbkeducationalservices@gmail.com
Blogger link : https://incometaxindia1.blogspot.com/
YouTube link https://www.youtube.com/channel/UCtgyAk11-4JfHh1mHDyZ5bg
Tax Provision
269SS of Income Tax Act 1961 Mode of taking or accepting certain loans, deposits and specified sum.
Mode of taking or accepting certain loans, deposits and specified sum.
269SS. No person shall take or accept from any other person (herein referred to as the depositor), any loan or deposit or any specified sum(“specified sum” means any sum of money receivable, whether as advance or otherwise, in relation to transfer of an immovable property, whether or not the transfer takes place), otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account [or through such other electronic mode as may be prescribed], if,—
 (a) the amount of such loan or deposit or specified sum or the aggregate amount of such loan, deposit and specified sum; or
 (b) on the date of taking or accepting such loan or deposit or specified sum, any loan or deposit or specified sum taken or accepted earlier by such person from the depositor is remaining unpaid (whether repayment has fallen due or not), the amount or the aggregate amount remaining unpaid; or
 (c) the amount or the aggregate amount referred to in clause (a) together with the amount or the aggregate amount referred to in clause (b),
is twenty thousand rupees or more:
कुछ उधार, निक्षेप या विनिर्दिष्ट राशियां लेने या प्रतिगृहीत करने का ढंग
269धध. कोर्इ व्यक्ति किसी अन्य व्यक्ति से (जिसे इसमें निक्षेपकर्ता कहा गया है) कोर्इ उधार या निक्षेप या विनिर्दिष्ट धनराशि(“विनिर्दिष्ट राशि” से किसी स्थावर संपत्ति के अंतरण के संबंध में, चाहे ऐसा अंतरण होता है अथवा नहीं, अग्रिम के रूप में या अन्यथा, प्राप्य कोर्इ धनराशि अभिप्रेत है) पाने वाले के खाते में देय चैक या पाने वाले के खाते में देय बैंक ड्राफ्ट द्वारा या किसी बैंक खाते के माध्यम से [इलैक्ट्रानिक निकासी प्रणाली का उपयोग करके या किसी अन्य इलैक्ट्रानिक पद्धति का उपयोग करके, जो विहित की जाए] ही लेगा या प्रतिगृहीत करेगा अन्यथा नहीं, यदि—
(क) ऐसे उधार या निक्षेप की रकम या विनिर्दिष्ट राशि अथवा ऐसे उधार, निक्षेप और विनिर्दिष्ट राशि की कुल रकम; या
(ख) ऐसे उधार या निक्षेप या विनिर्दिष्ट राशि लेने या उसका प्रतिग्रहण करने की तारीख को ऐसे व्यक्ति द्वारा उस निक्षेपकर्ता से पहले लिया गया या प्रतिगृहीत उधार या निक्षेप या विनिर्दिष्ट राशि (चाहे प्रतिसंदाय शोध्य हो गया हो या नहीं) की रकम या कुल रकम, जो असंदत है; या
(ग) खंड (ख) में निर्दिष्ट रकम या कुल रकम खंड (क) में निर्दिष्ट रकम या कुल रकम के साथ मिलकर,
बीस हजार रुपए या उससे अधिक है :
Provided that the provisions of this section shall not apply to any loan or deposit or specified sum taken or accepted from, or any loan or deposit or specified sum taken or accepted by,—
 (a) the Government;
 (b) any banking company, post office savings bank or co-operative bank;
 (c) any corporation established by a Central, State or Provincial Act;
 (d) any Government company as defined in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013);
 (e) such other institution, association or body or class of institutions, associations or bodies which the Central Government may, for reasons to be recorded in writing, notify in this behalf in the Official Gazette:
Provided further that the provisions of this section shall not apply to any loan or deposit or specified sum, where the person from whom the loan or deposit or specified sum is taken or accepted and the person by whom the loan or deposit or specified sum is taken or accepted, are both having agricultural income and and neither of them has any income chargeable to tax under this Act.
परंतु इस धारा के उपबंध ऐसे किसी उधार या निक्षेप या विनिर्दिष्ट राशि को लागू नहीं होंगे जो निम्नलिखित से ली अथवा प्रतिगृहीत की जाती है या ऐसे किसी उधार या निक्षेप या विनिर्दिष्ट राशि को लागू नहीं होंगे जो निम्नलिखित द्वारा ली जाती है या प्रतिगृहीत की जाती है, अर्थात् :—
(क) सरकार;
(ख) कोर्इ बैंककारी कंपनी, डाकघर बचत बैंक या सहकारी बैंक;
(ग) केंद्रीय, राज्य या प्रान्तीय अधिनियम द्वारा स्थापित कोर्इ निगम;
(घ) कंपनी अधिनियम, 2013 (2013 का 18) की धारा 2 के खंड (45) में यथापरिभाषित कोर्इ सरकारी कंपनी;
(ड़) ऐसी अन्य संस्था, संगम या निकाय अथवा ऐसे वर्ग की संस्थाएं, संगम या निकाय जिन्हें केंद्रीय सरकार, लेखबद्ध किए जाने वाले कारणों से, राजपत्र में इस निमित अधिसूचित करें :
परंतु यह और कि इस धारा के उपबंध किसी उधार या निक्षेप या विनिर्दिष्ट राशि को लागू नहीं होंगे जहां ऐसा व्यक्ति जिससे उधार या निक्षेप या विनिर्दिष्ट राशि ली जाती है या प्रतिगृहीत की जाती है और ऐसा व्यक्ति जिसके द्वारा उधार या निक्षेप या विनिर्दिष्ट धनराशि ली जाती है या प्रतिगृहीत की जाती है, दोनों ही की कृषि आय है और उनमें से किसी की भी इस अधिनियम के अधीन कर से प्रभार्य कोर्इ आय नहीं है।
Explanation.—For the purposes of this section,—
  (i) “banking company” means a company to which the provisions of the Banking Regulation Act, 1949 (10 of 1949) applies and includes any bank or banking institution referred to in section 51 of that Act;
 (ii) “co-operative bank” shall have the same meaning as assigned to it in Part V of the Banking Regulation Act, 1949 (10 of 1949) ;
(iii) “loan or deposit” means loan or deposit of money;
(iv) “specified sum” means any sum of money receivable, whether as advance or otherwise, in relation to transfer of an immovable property, whether or not the transfer takes place.
स्पष्टीकरण.—इस धारा के प्रयोजनों के लिए,—
(i) “बैंककारी कंपनी” से ऐसी कंपनी अभिप्रेत है जिसे बैंककारी विनियमन अधिनियम, 1949 (1949 का 10) के उपबंध लागू होते हैं और इसके अंतर्गत उस अधिनियम की धारा 51 में निर्दिष्ट कोर्इ बैंक या बैंककारी संस्था भी है;
(ii) “सहकारी बैंक” का वही अर्थ होगा, जो बैंककारी विनियमन अधिनियम, 1949 (1949 का 10) के भाग 5 में उसका है;
(iii) “उधार या निक्षेप” से धन का उधार या निक्षेप अभिप्रेत है;
(iv) “विनिर्दिष्ट राशि” से किसी स्थावर संपत्ति के अंतरण के संबंध में, चाहे ऐसा अंतरण होता है अथवा नहीं, अग्रिम के रूप में या अन्यथा, प्राप्य कोर्इ धनराशि अभिप्रेत है।
Penalty for failure to comply with the provisions of section 269SS.
271D. (1) If a person takes or accepts any loan or deposit or specified sum in contravention of the provisions of section 269SS, he shall be liable to pay, by way of penalty, a sum equal to the amount of the loan or deposit or specified sum so taken or accepted.
(2) Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner.
धारा 269धध के उपबंधों के पालन में असफलता के लिए शास्ति
271घ. (1) यदि कोर्इ व्यक्ति धारा 269धध के उल्लंघन में कोर्इ उधार लेगा या निक्षेप या विनिर्दिष्ट राशि स्वीकार करेगा, तो वह शास्ति के रूप में इस प्रकार लिए गए या स्वीकृत उधार या निक्षेप या विनिर्दिष्ट राशि की रकम के बराबर राशि का संदाय करने का दायी होगा।
(2) उपधारा (1) के अधीन अधिरोपणीय कोर्इ शास्ति संयुक्त आयुक्त द्वारा अधिरोपित की जाएगी
Illustrations:   
1. Mr. A accepted loan  from Mr B (on 30/07/2019 Rs. 12,000/- by Cash  on  15/12/2019 Rs. 15,000/- by bearer cheque)
2. Mr. A accepted loan  from Mr B (on 01/08/2019 Rs. 15,000/- by way of account payee cheque  on  16/12/2019 Rs. 15,000/- by  cash)
3. Mr. A accepted loan  from Mr B (on 01/08/2019 Rs. 15,000/- by cash on  16/12/2019 Rs. 15,000/- by way of account payee cheque )
Thank You !
Bipul Kumar
Business Consultant
Contact us: 9304027546, 9560084833
Email: rsbkeducationalservices@gmail.com
Blogger link : https://incometaxindia1.blogspot.com/
YouTube link https://www.youtube.com/channel/UCtgyAk11-4JfHh1mHDyZ5bg

SHIFTING OF AVAILABLE BALANCES IN THE ELECTRONIC CASH LEDGER (GST PMT-09)

Posted on by Business So Simple in Miscellaneous

SHIFTING OF AVAILABLE BALANCES IN THE ELECTRONIC CASH LEDGER (GST PMT-09)

(Effective from 21stApril 2020)

Bipul Kumar
Business Consultant
Contact us: 9304027546, 9560084833
Email: rsbkeducationalservices@gmail.com

Why PMT-09 is introduced?

Issues:

Once the taxpayer pays the challan, the payment gets credited in that head and the same can be utilized in settling their relevant output liabilities after adjusting with the Input Tax credit. But in some cases where the challan is wrongly paid or the amount is paid under the wrong head, it can’t be used against discharging the liabilities of that head due to which the taxpayers need to file another challan.

Solution before introduction of PMT-09 (Before 21 April 2020)

Taxpayer can claim the refund of the amount by filing a refund application in form RFD-01 choosing the option at the time of refund application of “Excess balance in electronic cash ledger”. Since taking the refund from govt is not really an easy task, an applicant must go through a long process which certainly takes more than a couple of months due to which the working capital of the taxpayers gets blocked.

Legal provisions

Govt has made amendment in Finance Act, 2019 by inserting sub section 10 and 11 to Section 49 of The CGST, 2017  on  30th Aug, 2019 which is applicable w.e.f. 01st Jan, 2020.
Sec 49 (10) and (11) The CGST, 2017 are reproduced as below:
10) A registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under this Act, to the electronic cash ledger for integrated tax, central tax, State tax, Union territory tax or cess, in such form and manner and subject to such conditions and restrictions as may be prescribed and such transfer shall be deemed to be a refund from the electronic cash ledger under this Act.
(11) Where any amount has been transferred to the electronic cash ledger under this Act, the same shall be deemed to be deposited in the said ledger as provided in sub-section (1).”
CBIC has also made corresponding changes in Rule 87 CGST rules, 2017 which deals with electronic cash ledger vide Notification No. 31/2019- Central Tax dated 28th June, 2019, with effect from a date to be notified later, by inserting sub rule 13 namely “ A registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under the Act to the electronic cash ledger for integrated tax, central tax, State tax or Union territory tax or cess in FORM GST PMT-09”. The said form was not enabled on portal on that date.GST common portal now enabled Form PMT-09 w.e.f. 21st April 2020  which is extremely crucial at this time when businesses earning no revenue due to a nationwide lockdown.
Points to consider before filing PMT-09
*    If the wrong tax has already been utilized for making any payment, then this challan is not useful. In other words, it will be able to handle only one situation and that is when payment is done in the wrong head and not utilized.
*     This challan only allows shifting of the amounts that are available in the electronic cash ledger.
*    The amount once utilized and removed from cash ledger cannot be reallocated.
*    Major head refers to- Integrated tax, Central tax, State/UT tax, and Cess.
*    Minor head refers to- Tax, Interest, Penalty, Fee and Others.
Form GST PMT-09 is a form which enables you to perform intra-head or inter-head transfer of amount available in Electronic Cash Ledger. It facilitates a registered taxpayer to transfer any amount of tax, interest, penalty, fee or others to the appropriate tax, interest, penalty, fee or others head under IGST, CGST, SGST/UTGST and Cess which is available in the Electronic Cash Ledger.
Thank You!
Bipul Kumar
Business Consultant
Contact us: 9304027546, 9560084833
Email: rsbkeducationalservices@gmail.com

Save your income taxes up to Rs 12500 (for the financial year 2019-20 or later years)

Posted on by Business So Simple in Miscellaneous
अपनी आय करों को बचाओ रुपये 12500 तक (वित्तीय वर्ष 2019-20 या बाद के वर्षों के लिए)
Save your income taxes up to Rs 12500 (for the financial year 2019-20 or later years)
Section – 87A, Income-tax Act, 1961: Rebate of income-tax in case of certain individuals.
धारा – 87क, आय-कर अधिनियम, 1961
Section – 87A, Income-tax Act, 1961
कतिपय व्यष्टियों की दशा में आय–कर का रिबेट
87क.
 ऐसा कोर्इ निर्धारिती, जो भारत में निवासी कोर्इ व्यष्टि है, जिसकी कुल आय पांच लाख रुपए  से अधिक नहीं है (जैसी इस अध्याय के अधीन कटौतियां अनुज्ञात करने से पूर्व संगणित की गर्इ हैं), अपनी उस कुल आय पर, जिसके लिए वह किसी निर्धारण वर्ष के लिए प्रभार्य है, आय–कर की रकम से ऐसे आय–कर के शत–प्रतिशत के बराबर रकम की या बारह हजार पांच सौ रुपए] की रकम की, इनमें से जो भी कम हो, कटौती का हकदार होगा।
Rebate of income-tax in case of certain individuals.
87A. 
An assessee, being an individual resident in India, whose TOTAL INCOME does not exceed five hundred  thousand rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income-tax or an amount of twelve thousand and five hundred rupees, whichever is less.
Note:
1.      Individual resident tax payer who are in 5% tax slab
2.      Total Income < Rs. 5 Lakh  (Gross total income less deductions i.e Net taxable Income DOES NOT  EXCEED Rs. 5 Lakh)
3.      Rebate= Amount of Income tax payable or Rs. 12,500, whichever is less
4.      Consequently any individual having Total Income upto Rs. 5 Lakh, will not required to pay any tax.
5.      Rebate shall be reduced before adding education cess
6.      Rebate u/s 87A is, however not available in respect of tax payable @10% on long term capital gains taxable u/s 112A( Equity shares, units of equity oriented fund, unit of business Trust.
7.      Net Taxable Income (NTI and tax amount should be rounded off to the nearest Rupees of 10
Tax planning:
If you have missed investment eligible u/s 80 C,  mediclaim payment for claiming deduction u/s 80D, Contributions to the PM National Relief Fund or PM Cares Fund (new name) u/s  Section 80G, Additional deductions upto Rs. 50,000 u/s 80CCD( 1B) etc. till 31st March 2020
then
Claim by investing/payment till 30th June 2020
To save tax upto Rs. 12,500/-
For FY 2019-20.
(1)  Investment in PPF/LIC etc which are eligible for deduction u/s 80C and mediclaim payment for claiming deduction u/s 80D can be done till 30.06.2020.
(2)  Contributions to the PM National Relief Fund or PM Cares Fund (new name)- Section 80G allows 100 % deduction for the amount contributed to this Fund. All contributions made between April 1, 2020 and June 30, 2020 will be eligible for deduction for only one FY under section 80G, as already specified under section 80G(5A).
????????
Decide : Donation u/s 80G or  Pay Tax
In case Total income more than  Rs.500,000  and upto Rs. 512500
Donation upto Rs. 12500 or pay tax Rs. 15,600 assuming total income Rs. 5,12,500
Note:
a.      There is a restriction of Rs. 1.50 Lakh for deposits in the PPF Account in one year. If the person has not deposited any amount in the PPF Account till 31.03.2020 and if he deposits it in between April to June 2020 then surely he will be eligible for deduction u/s 80C in the FY 2019-20.

Payment of Premium of old policies of LIC, mediclaim, PPF, NPS, etc. due upto 31st March can be claimed as deduction even if paid till 30th June. If the person pays the premium which is due in April  – 2020 and if he makes the payment of the same before 30.06.2020 then he cannot get deduction in the FY 2019-20 (AY 2020-21). Only the payment of such policies which has become due before 31st March would be considered for deduction

GST Amendments in the wake of COVID-19

Posted on by Business So Simple in Miscellaneous
GST Amendments in the wake of COVID-19
Bipul Kumar
Business Consultant
Contact us: 9304027546, 9560084833
Email: rsbkeducationalservices@gmail.com, bkumarca80@gmail.com
The spread of Novel Corona Virus (COVID-19) across many countries of the world, including India, has caused immense loss to the lives of people and resultantly impacted the trade and industry. In view of the emergent situation and challenges faced by taxpayers in meeting the compliance requirements under various provisions of the Central Goods andServices Tax Act, 2017 (hereinafter referred to as the “CGST Act”), Government has announced various relief measures relating to statutory and regulatory compliance matters across sectors.
Government has issued various notifications in order to provide relief to the taxpayers.

i) Notification 30/2020 :
1)  The due date to file form CMP-02 {Rule 3(3)} and Form GST ITC-03 {Rule 44(4)} extended –
 The last date to file form CMP -02 for any registered person who wanted to opt for composition scheme (section 10 as well as notification 2/2019 ) for the financial year 2020-21 was 31st March 2020, which has now been extended to 30th June 2020.
Which means any registered person will have to file intimation in Form CMP-02 on or before 30/06/2020 if he wishes to opt for Composition levy for the F.Y 2020-21. This is a positive amendment as looking into the current state of market , the tax payers will get some time to evaluate whether they want to go for composition or not in this year.
Also if any registered person wants to opt for composition scheme then he has to file form ITC-03 for reversal of ITC as per Section 18(4) read with  rule 44(4) of the CGST rules, with respect to that for F.Y 2020-21 any registered person who opts for composition scheme will have to furnish the statement of reversal of ITC in form ITC-03 on or before 31st July 2020.
2) Amendment in rule 36(4) regarding restriction of ITC availment :
A new rule was inserted in October 2019 according to which the provisional tax  credit (invoices of which are not reflected in GSTR-2A) can be claimed in GSTR-3B only to the extent of 10% of eligible ITC reflected in GSTR-2A. ( the restriction was 20% for the period 9th Oct 2019 to 31st Dec 2019).
As per the notification issued now, the said condition of restriction of ITC shall apply cumulatively for the period of Feb, March, April, May, June, July and August  2020 in Form GSTR 3B for the tax period of September 2020.
In this scenario there will be a lot of confusion indeed as already the tax payers and the consultants were facing a lot of issue to keep a track of this 10% ITC and practically many difficulties were arising now as per this notification to give a cumulative effect in the month of September will be a very tough task and almost next to impossible. We hope government provides more clarifications with respect to
ii) Notification 31/2020 :Lower rate of Interest subject to fulfilment of Conditions-
In this notification the government has specified the rate of interest for persons who are required to furnish returns in Form GSTR-3B and fails to furnish the same within due date but furnishes the same as per the date specified in the notification.
Tax Payers with Aggregate Turnover    (in preceding F.Y) :
Tax Period
Rate of Interest
If GSTR -3B is furnished by :
More  than Rs. 5 Crores
February 2020
March 2020
April 2020
Nil – for 1st 15 days from       the due date (here due date means original due date of furnishing the return )
9%  p.a  – From 16th Day onwards till the date of furnishing the return.
                                                                     
       24th June 2020
More than Rs. 1.5 Crores and upto 5 Crores
February 2020
March 2020
NIL
       29th June 2020
April 2020
NIL
      30th June 2020
Upto Rs. 1.5 Crores
February 2020
NIL
      30th June 2020
March 2020
NIL
      3rd July 2020
April 2020
NIL
      6th July 2020
Here the government has given a relief to all category of tax payers by lowering the rate of interest on fulfilling the condition mentioned.
However the reduced rate of 9% and Nil will only be applicable if the returns are furnished as per the date specified above, if at all the returns were not furnished by the said dates then the normal rate of interest will be levied i.e 18% from the due date of furnishing the return ( taxpayers should understand that the due dates have not been extended here due date will be same as earlier) also the regular late fees and penalty shall be imposed.
Therefore the above compliances should be met in time or else tax payer will have to bare a huge burden of interest , penalty and late fees.
 iii) Notification 32/2020 : Waiver of late fee subject to fulfilment of Conditions-
In this notification the government has specified that the amount of late fees payable by  persons who are required to furnish returns in Form GSTR-3B and fails to furnish the same within due date but furnishes the same as per the date specified in the notification shall be waived for the tax period specified.
Tax Payers with Aggregate Turnover    (in preceding F.Y) :
Tax Period
If GSTR -3B is furnished by :
More  than Rs. 5 Crores
February 2020
March 2020
April 2020
                                                                      
       24th June 2020
     
More than Rs. 1.5 Crores and upto 5 Crores
February 2020
March 2020
       29th June 2020
April 2020
      30th June 2020
Upto Rs. 1.5 Crores
February 2020
      30th June 2020
March 2020
      3rd July 2020
April 2020
      6th July 2020
The conditions are same as specified in notification 31/2020 relating to interest waiver, the late fees will be waived only if the returns are furnished within the date specified in this notification and if the tax payer fails to furnish the same he will have to pay the late fees from the due date of filing the return of that period till the date of furnishing the return.
v) Notification 34/2020 : Extension of due date to file GST CMP-08 and GSTR-4 .
1) Those registered persons who have opted for Composition Scheme are required to furnish statement every quarter containing details of payment of self assessed tax in Form GST CMP-08 , the due date of which is 18th day of the month succeeding such quarter.
So for the quarter Jan 2020 to March 2020, the due date would have been 18th of April 2020, which is now extended to 7th July 2020.
This is almost near to the date of furnishing the return of the next quarter, the tax payers will have to maintain all the data ready and well in time so that by the time of furnishing the next return they are having all data on hand.
2) Also the same class of persons have to furnish return for every financial year in Form GSTR-4. For F.Y 2019-20, the due date to file GSTR-4 was 30th April 2020 which is now extended to 15th July 2020.
vi) Notification 35/2020 : Extension of due date of compliances which fall between 20/3/2020 to 29/6/2020 .
1) In view of the spread of pandemic COVID-19 across many countries the govt. on the recommendation of the ) council notifies that :
“Any time limit for completion or compliance of any action, by any person, which falls between 20/3/2020 and 29/6/2020 has not been complied with then the time limit of such action shall be extended upto 30th June 2020.
The action may include all types of actions relating to notices, intimation, notification, sanction , approval, filing of any reports, documents, returns, documents, etc.
This notification shall not apply to  the following – Chapter IV- determination of value of supply, sections 10(3), 25, 27, 31, 37, 47, 50, 69, 90, 122, 129, 39 upto some extent, 68 as far as eway bill is concerned , and all corresponding rules to these sections.
2) Where an eway bill has been generated and its validity expires during 20/3/2020 to 15/4/2020, then the validity shall be deemed to have been extended till 30/04/2020.
vii) Notification 36/2020 : Extension of due date of filing GSTR-3B for the period May 2020 .
 For the Month of MAY 2020
Tax Payers with Aggregate Turnover    (in preceding F.Y) :
State/UT
Previous due date
New Due date
More than Rs. 5 Crores
All
20/06/2020
27/06/2020
Upto Rs. 5 Crores
Chhattisgarh,
Madhya Pradesh,
Gujarat,
Maharashtra,
Karnataka,
Goa,
Kerala, Tamil Nadu, Telangana, Andhra Pradesh, Daman and Diu,
Dadra and Nagar Haveli,
Puducherry, Andaman & Nicobar Islands, Lakshadweep
22/6/2020
12/7/2020
Himachal Pradesh , Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam,  West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi
24/06/2020
14/7/2020

Section 54 exemption now allowed for two residential houses in India (FA 2019)

Posted on by Business So Simple in Miscellaneous

Section 54 exemption now allowed for two residential houses in India (FA 2019 w.e.f 01/04/2019)

Where the amount of the capital gain does not exceed two crore rupees, the assessee may, at his option, purchase or construct two residential houses in India.

Where during any assessment year, the assessee has exercised this option, he shall not be subsequently entitled to exercise this option for the same or any other assessment year.

Refer extract of section 54 of Income Tax Act updated by FA 2019
https://incometaxindia1.blogspot.com/p/profit-on-sale-of-property-used-for.html



GST (Budget 2019)

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Budget Highlights  2019

Goods and Services Tax

1.    A Proviso has been inserted to clarify that interest for late payment of tax shall be levied only on that portion of tax which has been paid by debiting the electronic cash ledger. Earlier there was a confusion among taxpayers on this issue whether such interest would be charged on gross tax liability or only on net tax liability. However, there is one exception to this rule wherein interest shall be levied on gross tax liability. Where returns are filed subsequent to initiation of any proceedings under GST Act, the interest shall be levied on the gross tax liability.

2.    Every registered person shall authenticate, or furnish proof of possession of Aadhaar number. If an Aadhaar number is not assigned to the registered person, such person shall be offered an alternate and viable means of identification. In case of failure to undergo authentication or furnish proof of possession of Aadhaar number or furnish alternate and viable means of identification, registration allotted to such person shall be deemed to be invalid.

3.    Now a registered person can transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger to the electronic cash ledger for Integrated Tax, Central Tax, State Tax, Union Territory Tax or Cess through a new form PMT-09 subject to the conditions and restrictions prescribed under GST Act. Such transfer shall be deemed to be a refund from the electronic cash ledger.

4.    The Central Government has been authorized to pay the amount of refund towards State taxes to the taxpayers.

5.    The Government shall constitute an Authority ‘National Appellate Authority for Advance Ruling (NAAAR)’ for hearing appeals. It shall pass an order within 90 days from the date of filing of appeal.

6.    The value of exempt supply of services provided by way of extending deposits, loans or advances (where consideration is received in form of interest or discount) shall not be considered for determining turnover under Composition Scheme.

7.    Simplified return forms to be implemented soon. Composition registered dealers are required to pay tax quarterly and file return on annual basis.

Income tax (Budget 2019-20)

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Budget Highlights 2019-20

Income-tax

1.    The threshold limit for reduced tax rate of 25% in case of domestic companies has been increased from Rs. 250 crores to Rs. 400 crores. Thus, a domestic company whose total turnover or the gross receipt in the previous year 2017-2018 does not exceed Rs. 400 crore shall be taxable at the rate of 25%.

2.    A new Section 80EEA has been inserted to provide for deduction of up to Rs. 1.50 lakhs for interest on loan taken from any financial institution for acquisition of a residential house property whose stamp duty value does not exceed Rs. 45 lakhs.

3.    A new section 80EEB has been inserted to provide for a deduction of Rs. 1.5 lakhs in respect of interest on loan taken for purchase of an electric vehicle from any financial institution.

4.    The new rate of surcharge for Individual, HUF, AOP, BOI and AJP shall be – 10% (for income of Rs. 50 lakhs to Rs. 1 crore), 15% (for income of Rs. 1 crore to Rs. 2 crores), 25% (for income of Rs. 2 crores to Rs. 5 crores) and 37% (for income exceeding 5 crores).

5.    Any sum of money paid, or any property situated in India transferred, on or after July 5, 2019 by a person resident in India to a person outside India shall be deemed to accrue or arise in India under Section 9.

6.    Furnishing of return of income shall be mandatory under Section 139 if an individual has deposited Rs. 1 crore or more in current account or he has incurred expenditure of Rs. 2 lakhs or more on foreign travel or he has incurred expenditure of Rs. 1 lakh or more on electricity consumption.

7.    Income-tax return can be filed using Aadhaar Number, if person hasn’t been allotted PAN. If a person has linked his Aadhaar number with PAN, he may also furnish his Aadhaar number in place of PAN in the Income-tax return.

8.    PAN allotted to a person shall be deemed to be invalid, if he failed to intimate the Aadhaar to the Dept.

9.    A new Section 194N has been inserted to require deduction of tax at source at the rate of 2% if aggregate of cash withdrawn during the financial year from any account maintained with a banking company or cooperative bank or post office exceeds Rs. 1 crore.

10.  The sunset date for transfer of residential house property, for claiming exemption under Section 54GB in respect of investment made in eligible start-ups, has been extended from 31st March, 2019 to 31st March, 2021. Further, the conditions of minimum shareholding or voting rights has been relaxed from 50% to 25%.

11.  Application under Section 195(2) and 195(7) for lower or nil deduction of tax from sum paid or payable to non-residents person can be filed electronically.

12.  A new Section 194M has been inserted to require any individual or HUF (who is not required to deduct tax under Section 194C or 194J) to deduct tax at source from sum paid to a contractor or professional if aggregate payment during the year exceeds Rs. 50 lakh. The tax can be deposited under this provision without any requirement to obtain TAN.

13.  As per Section 194-IA, a buyer is required to deduct tax at source from the consideration paid to buy an immovable property. An explanation has been inserted that ‘consideration for immovable property’ shall include all charges paid towards club membership fee, car parking fee, electricity and water facility fees, maintenance fee, or any other charges of similar nature, which are incidental to transfer of the immovable property.

14.  In case of failure to file an Income-tax return, the prosecution proceedings are initiated under Section 276CC if the tax payable by the assessee is Rs. 3,000 or more. This threshold limit has been increased to Rs. 10,000.

15.  Constituent entity of an International group shall now be required to keep and maintain information and document under Section 92D and file required form even when there is no international transaction is undertaken by such constituent entity.

16.  There are various provisions in the Act which requires a person to make payment by account payee cheque/draft or ECS. In order to encourage other electronic modes of payment, the Government has proposed to amend relevant provisions to include other electronic modes of payment.

17.  Tax shall be deductible under Section 194DA at the rate of 5% only on the income component of life insurance pay-out. The existing rate of TDS was 1% on the gross amount.

18.  Relief under Section 89 shall be considered while computing the tax liability under Section 140A, section 143, section 234A, section 234B, and section 234C to avoid genuine hardships to the taxpayers who are claiming such relief.

19.  Every person, carrying on business, shall, provide facility for accepting payment through electronic modes if his turnover or gross receipts exceeds Rs. 50 crores. The Payment and Settlement Systems Act, 2007 is proposed to be amended to provide that no bank or system provider shall impose any charge upon anyone, either directly or indirectly, for using the electronic modes of payment.

20.  A taxpayer has been allowed to withdraw 60% of total amount from NPS as tax free. Currently, the exemption is allowed only up to 40% of the total corpus amount.

21.  Benefit of first proviso of Section 201(1) has been extended in case of failure to deduct tax at source from sum paid to non-residents. Thus, a deductor shall not be deemed to be an assessee in default even if he fails to deduct tax from sum paid to a non-resident, if such non-resident discloses such income in his return of income and pays tax due on such income and a certificate from a Chartered Accountant is furnished to this effect.

22.  Deduction of up to 10% of salary is allowed under Section 80CCD in respect of contribution made by an employer to NPS. The limit has been proposed to be increased to 14% of salary in case of Central Government’s employees.

23.  Section 12AA has been amended to provide that at the time of granting of registration to a trust or institution the Pr. CIT or CIT shall also satisfy himself that the applicant trust or institution also satisfy the requirements of any other law which is material for the purpose of achieving its objects.

24.  The Pr. CIT or CIT has been empowered to cancel the registration under Section 12AA, if after granting registration it has been noticed that the trust or institution has violated requirements of any other law which was material for the purpose of achieving its objects.

25.  Section 115QA which requires payment tax on distributed income in case of buy-back of shares has proposed to be extended to listed companies as well.

26.  ITR filing is mandatory, if total income of assessee before claiming the benefit of capital gain exemption under sections 54, 54B, 54EC, 54F, 54G, 54GA and 54GB, doesn’t exceeds the maximum amount not chargeable to tax.

UNION BUDGET 2019-20 (Income tax & GST)

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UNION BUDGET 2019-20 (Income tax & GST)


INDIVIDUALS

1New deduction upto Rs. 1.5 lakh for interest on loan from financial Institutions
2New deduction upto Rs. 1.5 lakhs for interest on loan for electric vehicles
3Increase in surcharge for individuals falling in High income group
4Return filing is mandatory those incurring Rs. 1 lakh or more on electricity
5Income tax return can be filed with Aadhaar number instead of PAN
6Liability to deduct TDS by Individual or HUF falling outside section 194C or 194J
7Threshold of prosecution for non-filing of return extended
8Exemption limit for withdrawal from NPS extended to 60%
9TDS under section 194DA is deductible on net amount only

CORPORATES
1.     Benefit for reduced tax extended to companies having turnover upto 400 Cr.
2Constituent entity of an International group shall now be required to keep & maintain information & document under Section 92D
3Listed companies are also required to pay tax on distributed Income
4Section 89 relief shall be considered while determining liability under section 140A & 143
5Limit for furnishing Statement of financial reporting has been revised
6Modes prescribe for electric payment to include other electronic modes of payment
GST
1Every registered person shall authenticate, or furnish proof of possession of Aadhaar number
2Value of exempt supply of services by way of extending deposits etc. shall not be included in Turnover for composition scheme
3Government shall constitute ‘National Appellate Authority for Advance Ruling (NAAAR)’ for hearing appeals
4The CG has been authorized to pay the amount of refund towards State taxes to the taxpayers
5Composition registered dealers are required to pay tax quarterly and file return on annual basis.
6Simplified return forms to be implemented soon