News and Events
Following are the decisions with respect to statutory and regulatory compliance matters related to various sectors taken due to the pandemic situation
1. Extend last date for income tax returns for (FY 18-19) from 31st March, 2020 to 30th June, 2020.
- Exemption of interest income on deposits with banks and post offices to be increased from Rs 10,000 to Rs 50,000 for senior citizens.
- TDS not required to be deducted under section 194A for senior citizens. Benefit also available for interest from all fixed deposit schemes and recurring deposit schemes.
- Hike in deduction limit for health insurance premium and/or medical expenditure from Rs 30,000 to Rs 50,000 under section 80D.
- Increase in deduction limit for medical expenditure for certain critical illness from Rs 60,000 (in case of senior citizens) and from Rs 80,000 (in case of very senior citizens) to Rs 1 lakh for all senior citizens, under section 80DDB.
- Current investment limit proposed to be increased to Rs 15 lakh from the existing limit of Rs 7.5 lakh per senior citizen.
- Proposed to extend Pradhan Mantri Vaya Vandana Yojana up to March, 2020.
- More concessions for International Financial Services Centre (IFSC), to promote trade in stock exchanges located in IFSC.
- To control cash economy, payments exceeding Rs 10,000 in cash made by trusts and institutions to be disallowed and would be subject to tax.
- Tax on Long Term Capital Gains exceeding Rs 1 lakh at the rate of 10%, without allowing any indexation benefit. However, all gains up to 31st January, 2018 will be grandfathered.
- Proposal to introduce tax on distributed income by equity oriented mutual funds at the rate of 10%.
- Proposal to increase cess on personal income tax and corporation tax to 4% from present 3%.
- Proposal to roll out E-assessment across the country to almost eliminate person to person contact leading to greater efficiency and transparency in direct tax collection.
- Proposed changes in customs duty to promote creation of more jobs in the country and also to incentivise domestic value addition and 'Make in India' in sectors such as food processing, electronics, auto components, footwear and furniture.
- Late fee reduction:
- For GSTR-1, GSTR-5, GSTR-5A and GSTR-6 the late fees is reduced to Rs. 50 per day.
- In case of Nil return filed for GSTR-1, GSTR-5, GSTR-5A late fee is reduced to Rs. 20 per day.
- The maximum late fees that can be charged is Rs 5,000.
- Cancellation of registration by voluntary registrants can be applied before expiry of 1 year from the date of registration.
- Cancellation of registration (REG – 29) by migrated taxpayers extended till 31st March 2018.
- Certain modification to e-way bill rules to be notified soon.
- On successful implementation of e-Way bills, the E-way bill portal to be shifted to ewaybillgst.gov.in
- Recommendations made by Handicraft committee has been accepted by the council: The rates are to be worked out later.
- GST Rates for 29 Goods and 53 Services have been reduced with effect from 25th January 2018.
- name, e-mail id, contact number;
- address in the country or specified territory outside India of which the deductee is a resident;
- a certificate of his being resident in any country or specified territory outside India from the Government of that country or specified territory if the law of that country or specified territory provides for issuance of such certificate;
- Tax Identification Number of the deductee in the country or specified territory of his residence and in case no such number is available, then a unique number on the basis of which the deductee is identified by the Government of that country or the specified territory of which he claims to be a resident.
2. Aadhaar-PAN linking date to be extended from 31st March, 2020 to 30th June, 2020.
3. Vivad se Vishwas scheme – no additional 10% amount, if payment made by June 30, 2020.
4. Due dates for issue of notice, intimation, notification, approval order, sanction order, filing of appeal,
furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer including investment in saving instruments or investments for roll over benefit of capital gains under Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas law where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020.
5. For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT made between 20th March 2020 and 30th June 2020, reduced interest rate at 9% instead of 12 %/18 % per annum ( i.e. 0.75% per month instead of 1/1.5 percent per month) will be charged for this period. No late fee/penalty shall be charged for delay relating to this period.
6. Necessary legal circulars and legislative amendments for giving effect to the aforesaid relief shall be issued in due course.
GST/Indirect Tax1. Those having aggregate annual turnover less than Rs. 5 Crore Last date can file GSTR-3B due in March, April and May 2020 by the last week of June, 2020. No interest, late fee, and penalty to be charged.
2. Others can file returns due in March, April and May 2020 by last week of June 2020 but the same would attract reduced rate of interest @9 % per annum from 15 days after due date (current interest rate is 18 % per annum). No late fee and penalty to be charged, if complied before till 30th June 2020.
3. Date for opting for composition scheme is extended till the last week of June, 2020. Further, the last date for making payments for the quarter ending 31st March, 2020 and filing of return for 2019-20 by the composition dealers will be extended till the last week of June, 2020.
4. Date for filing GST annual returns of FY 18-19, which is due on 31st March, 2020 is extended till the last week of June 2020.
5. Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents, time limit for any compliance under the GST laws where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020.
6. Necessary legal circulars and legislative amendments to give effect to the aforesaid GST relief shall follow with the approval of GST Council.
7. Payment date under Sabka Vishwas Scheme shall be extended to 30th June, 2020. No interest for this period shall be charged if paid by 30th June, 2020.
Customs8. 24X7 Custom clearance till end of 30th June, 2020
9. Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing applications, reports, any other documents etc., time limit for any compliance under the Customs Act and other allied Laws where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020.
Financial Services1. Relaxations for 3 months Debit cardholders to withdraw cash for free from any other banks’ ATM for 3 monthsWaiver of minimum balance feeReduced bank charges for digital trade transactions for all trade finance consumers
Corporate Affairs1. No additional fees shall be charged for late filing during a moratorium period from 01st April to 30th September 2020, in respect of any document, return, statement etc., required to be filed in the MCA-21 Registry, irrespective of its due date, which will not only reduce the compliance burden, including financial burden of companies/ LLPs at large, but also enable long-standing non-compliant companies/ LLPs to make a ‘fresh start’;
2. The mandatory requirement of holding meetings of the Board of the companies within prescribed interval provided in the Companies Act (120 days), 2013, shall be extended by a period of 60 days till next two quarters i.e., till 30th September;
3. Applicability of Companies (Auditor’s Report) Order, 2020 shall be made applicable from the financial year 2020-2021 instead of from 2019-2020 notified earlier. This will significantly ease the burden on companies &their auditors for the year 2019-20.
4. As per Schedule 4 to the Companies Act, 2013, Independent Directors are required to hold at least one meeting without the attendance of Non-independent directors and members of management. For the year 2019-20, if the IDs of a company have not been able to hold even one meeting, the same shall not be viewed as a violation.
5. Requirement to create a Deposit reserve of 20% of deposits maturing during the financial year 2020-21 before 30th April 2020 shall be allowed to be complied with till 30th June 2020.
6. Requirement to invest 15% of debentures maturing during a particular year in specified instruments before 30th April 2020, may be done so before 30th June 2020.
7. Newly incorporated companies are required to file a declaration for Commencement of Business within 6 months of incorporation. An additional time of 6 more months shall be allowed.
8. Non-compliance of minimum residency in India for a period of at least 182 days by at least one director of every company, under Section 149 of the Companies Act, shall not be treated as a violation.
9. Due to the emerging financial distress faced by most companies on account of the large-scale economic distress caused by COVID 19, it has been decided to raise the threshold of default under section 4 of the IBC 2016 to Rs 1 crore (from the existing threshold of Rs 1 lakh). This will by and large prevent triggering of insolvency proceedings against MSMEs. If the current situation continues beyond 30th of April 2020, we may consider suspending section 7, 9 and 10 of the IBC 2016 for a period of 6 months so as to stop companies at large from being forced into insolvency proceedings in such force majeure causes of default.
10. Detailed notifications/circulars in this regard shall be issued by the Ministry of Corporate Affairs separately.
Direct Tax Collections for F.Y. 2017-2018 show Growth of 18.7% up to 15th January, 2018
The direct tax collections up to 15th January, 2018 are at Rs. 6.89 lakh crore which is 18.7% higher than the net collections for the corresponding period last year.
Taxpayers: e-Filing Helpdesk number has been changed.
New Helpdesk number is as below:
India Toll Free - 1800 103 0025
Direct Number - +91 80 4612 2000
GST Updates - Key Decisions Taken in the 25th GST Council Meet:
The direct tax collections up to November, 2016 are at Rs. 4.12 lakh
crore which is 15.12% higher than the net collections for the corresponding period last year.
Source : incometaxindiaefiling.gov.in
Quoting of PAN Mandatory
A notification has been issued stating that quoting of PAN to the Banking Company, Post office etc. is mandatory for transactions exceeding fifty thousand rupees during any one day or an aggregate of amount exceeding two lakh fifty thousand rupees remitted during the period 09/11/2016 to 30/12/2016.
Provision to Incorporate Companies Electronically
MCA has taken a bold initiative in Government Process Re-engineering (GPR) and has launched a Simplified proforma for Incorporating Companies Electronically.
Tax Relief for certain Donations
All donations towards the Prime Minister’s National Relief Fund (PMNRF) and the National Defence Fund (NDF) are notified for 100% deduction from taxable income under Section 80G of the Income Tax Act, 1961.
Provision to E-Verify Income Tax Returns
Electronic Verification Code (EVC) can be generated by pre-validating your Bank Account on the e-Filing portal. Punjab National Bank and United Bank of India have launched this facility which will facilitate the account holders, who may not have a NetBanking account, to e-verify their return. Other banks are expected to launch this facility
Electronic Verification Code (EVC) can be generated by pre-validating your Demat Account on the e-Filing portal. NSDL and CDSL have launched this facility which will facilitate the account holders to e-verify their return.
Relaxation from deduction of tax at higher rate under section 206AA
In the case of a non-resident, not being a company, or a foreign company and not having permanent account number the provisions of section 206AA shall not apply in respect of payments in the nature of interest, royalty, fees for technical services and payments on transfer of any capital asset, if the deductee furnishes the details and the documents specified in sub-rule (2) to the deductor.
Sub Rule (2) states that, the deductee shall in respect of payments specified therein, furnish the following details and documents to the deductor, namely :-
Amendment to Companies Act will help boost fund flow for MSMEs: Arun Jaitley
Finance minister Arun Jaitley has said amendments to the Companies Act 2013 being considered by Parliament will help ease institutional fund flow to small businesses, acknowledging this has been an issue with the MSME sector that has also not received adequate policy attention
The MSME database portal and finance facilitation portal are part of the Digital India initiative and will facilitate ease of doing business in the country. MSME sector is one of the biggest job creators in the country, employing about 110 million people. The online databank is expected to cut down on the costs and efforts put in conducting census physically.