R K Bhadu & Co.

23/08/2020

05/07/2020

*T.D.S*
New rule for Cash withdrawal Effective From *1-7-20*

Section 194N of Income Tax Act
TDS on payment of certain amounts in cash
Who are liable to deduct?:
Bank, Co-operative bank or Post Office

Threshold limit:
If aggregate payment in cash from one or more accounts during a previous year to an account holder exceeds the threshold limit given below:

On or after 01.07.2020

Customer who have not filed their tax returns for the previous 3 years and for which the due date for filing tax return has expired:

1. exceeding Rs. 20 lakh but not exceeding Rs. 1 crore:-TDS Rate-2%

2. exceeding Rs. 1 crore:- Rate-5%

Customers other than mentioned above:

1. up to Rs. 1 crore:- 0%

2. exceeding Rs. 1 crore:-. 2%

The applicability of new provision as per amendments in the Finance Act 2020

The cash withdrawal limit for this F/Y will be considered from 01.04.2020

Deductible: Tax is deductible at the time of payment of cash.

Can the person file application for Lower TDS Certificate: ?
Not Possible

Any Exemption:?
Exemption is available, when payment is made to certain recipients, such as the government, banking company, co-operative society engaged in carrying on the business of banking, post office, banking correspondents and white label ATM operators, who are involved in the handling of substantial amounts of cash as a part of their business operations.

The Central Government has exempted the following recipients:
Persons specified by the Central Government

TDS provisions of section 194N are not applicable only if certain conditions are satisfied(..)

1.Cash Replenishment Agencies (CRA’s) and franchise agents of White Label Automated Teller Machine Operators (WLATMO’s)

(If these persons maintain a separate bank account from which cash withdrawal is made only for the purpose of replenishing cash in ATM operated by such WLATMO have furnished a monthly certificate to the bank certifying that cash withdrawal has been reconciled with the amount of cash deposited in the ATMs.)

2.The commission agent/trader, operating under Agriculture Produce Market Committee (APMC) and registered under any law relating to APM of the concerned state.
(If these persons have certified to the banking company/co-operative society/post office that cash withdrawal (in excess of Rs. 1 crore in the previous year) is for the purpose of making payments to the farmers on account of purchase of agriculture produce.)

3. An authorized foreign exchange dealer and its franchise agent/sub-agent

Full-Fledged Money Changer licensed by RBI and its franchise agent

(If cash withdrawal is made only for the purpose of foreign currency from foreign tourists or non-residents visiting India or from resident Indians on their return to India, in cash as per the RBI directions or guidelines. These persons are not subject to TDS provisions of section 194N if cash withdrawal is made by these persons for the purpose of disbursement of inward remittances to the recipient beneficiaries in India in cash under Money Transfer Service Scheme of RBI.)

Above specified persons can withdraw cash without TDS under section 194N.

Tax deducted under section 194N shall not be deemed to be income received for computing income of the recipient.

03/07/2020

*Most awaited update on MSME*
Ministry of Micro, Small and Medium Enterprises vide notification dated 26th June, 2020 has issued new guidelines for existing MSMEs and the upcoming MSMEs.

Some highlights are as follows:-

1. *All existing enterprises registered under Udyog Aadhar Memorandum shall register again on or after 01.07.2020.*
2. Registration will be called *Udyam Registration*;
3.Classification of Enterprises;
4. Turnover Calculation;
5. Investment calculation; 6. Registration Process for new enterprises; 7. Registration for existing enterprises; 8. Facilitation and Grivevance redressal of Enterprises. 9. Information of Turnover will be linked to IT Act or CGST Act and GSTIN; 10. Effective date will be 01.07.2020

01/07/2020

💐💐💐Happy CA Day💐💐👨🏻‍💻🤘🏻

25/06/2020

*CBDT has issued a Notification No. 35/2020/ F. No. 370142/23/2020-TPL further extending the time limits of compliances under Income Tax Act:*

👉 Due date for filing Income Tax Return for F.Y 2018-19 has been extended to 31.07.2020.

👉 Due date for filing Income Tax Return for F.Y 2019-20 has been extended to 30.11.2020.

👉 Due date for furnishing of report of audit under any provision of Income Tax for FY 2019-20 has been extended to 31.10.2020.

👉 Waiver of interest u/s 234A in cases where self assessment tax is upto Rs 1 lakh for FY 2018-19.

👉 Deductions under Ch-VIA like Sec 80C, 80D, 80G, etc can now be made upto 31.07.2020 for FY 2019-20.

👉 Deductions u/s 54 or 54GB has been extended to 30.09.2020 for investment falling between 20.03.2020 to 29.09.2020

👉 Beginning of manufacture u/s 10AA condition has been extended to 30.09.2020 for the period falling between 20.03.2020 to 29.09.2020.

👉 TDS Certificates for Q4 2019-20 can be issued till 15.08.2020 including Form 16 of employees.

👉 The date for furnishing of TDS/TCS statements for the Q4 2019-20 has been extended to 31.07.2020

👉 The date for furnishing of TDS/TCS statements for government offices for the Q4 2019-20 has been extended to 15.07.2020

👉 Direct Tax Vivad se Vishwas scheme has been extended till 31.12.2020.

👉 Compliance such as notice, replies, appeals etc from 20.03.2020 to 31.12.2020, the time is extended till 31.03.2021.

15/06/2020

UPDATE: Today is last date for Advance Tax for 1st Quarter of F.Y. 2020-21 (A.Y. 2021-22)

12/06/2020

GST Council 40th Meeting.

09/06/2020

*No one can predict the market*

World is not coming to an end. No business man is shutting down its business due to corona virus. In the long term, it is the company performance which you own the shares decides the returns not the market.

You cannot predict SENSEX. Not even analysts. *Giving time in the market is important for Wealth Creation*

Only few create wealth from markets because the journey is not emotionally easy.

*Unless you learn not to react to your emotions, develop right understanding and enormous patience; it is impossible to create wealth.*

*Nothing meaningful in life can be achieved without pain. So is wealth.* Wealth or lack of it makes enormous difference to our life on earth. So embrace pain and patience.

*The reward is wealth.*

*Saarthi jaroori hai*

*Bachate Raho*

08/06/2020

“Investors should remember that excitement and expenses are their enemies.” - Warren Buffett

06/06/2020

INCOME TAX A.Y.2020-21
Keep updated on changes in IT Act 1961

Disclosures in New ITR forms ( SBC)
1) Taxpayers ( Individual)
Joint ownership of house property cannot file ITR 1 to 4

2). Passport:
Disclose of your Passport number in ITR 1-Sahaj and ITR 4-Sugam.

3). Cash Deposits :
For ITR 4 have to declare the amount deposited as cash in a bank account, if it exceeds Rs 1 crore during the FY.

4. Foreign travel:
If expenses are more than Rs 2 lakh on foreign travel during the FY, disclosed the actual amount.

5. Electricity consumption:
Electricity bills more than Rs 1 lakh in during the FY required disclosure.

6. Investment details:
Investment qualifying for deduction under chapter VIA will require details of investment during the period.

7. Assessment year:
The last date for filing ITR will be July 31, However, this year ITR filing date has been extended till 30/11/2020.

8. Income Tax Exemptions and Deductions:
In New Tax Regime:
Withdrawal by an employee from the Employees' Provident Fund (EPF) is not taxable after 5 years of continuous service.

9. National Pension Scheme (NPS):
Maturity or premature closure up to 40% of the amount received on such withdrawal remains tax free.
Partial withdrawal from NPS, up to 25% of the contributions made by the individual will be tax free.
Employer’s contribution to NPS up to 10% of their basic salary and dearness allowance will be tax free.

10. Insurance Plan U/s10 (10D) :
Assured sum and any bonus paid on maturity or surrender of the life insurance plan is tax free even in the new regime.
The maturity amount including interest received on the Sukanya Samriddhi Yojana will be tax free.

11. Conveyance Allowance :
Expenditure incurred on conveyance in performance of duties of an office and any allowance granted to an employee to meet the cost of travel on tour or on transfer are tax free.

12. Post office Savings A/c :
Interest received from post office savings account balance up to ₹3,500 annually per individual will remain free from tax.

13. Scholarship :
granted to meet education costs is exempt under Section 10 (16)

14. Form 26AS:
Complete profile of the taxpayer w.e.f. 01.06.2020

a) Will also provide information in respect of “Specified financial transactions” which include transactions of
- purchase/ sale of goods
-property
-services
-works contract
- investment
-expenditure,
-Loans or deposits of such value as may be prescribed but not less than of Rs 50,000.

b) Information about
-Income tax demand
-Refund
-Proceedings pending, and proceedings completed

c) 26AS, will be updated regularly winthin 3 months.

d)Form 26AS will now be a complete profile of the taxpayer

e)The CBDT to authorise DG Systems or any other officer to upload any information from any officer under any law in this form.

f) Adverse action initiated or taken or found or order passed under any other law such as custom , GST , Benami Law etc. including information about Turnover , import , export etc. will also be put in this form 26AS.

g) Form 26AS will provide information received by Tax Deptt from any other country under the treaty /exchange of information about income or assets of the taxpayer located outside India.

31/05/2020

*6 key changes notified in the Income Tax Returns (ITR) for the F/Y 2019-2020:*

*1. House ownership:*
Individual taxpayers who are joint owners of house property cannot file ITR 1 or ITR4.

*2. Passport:*
One needs to disclose the Passport number if held by the taxpayer. This is to be furnished both in ITR 1-Sahaj and ITR 4-Sugam. Hopefully, it will be made mandatory in other ITR Forms as and when they are notified.

*3. Cash deposit:*
For those filing ITR 4-Sugam, it has been made compulsory to declare the amount deposited as cash in a bank account, if such amount exceeds Rs 1 crore during the FY.

*4. Foreign travel:*
If you have spent more than Rs 2 lakh on travelling abroad during the FY, you need to disclose the actual amount spent.

*5. Electricity consumption:*
If your electricity bills have been more than Rs 1 lakh in aggregate during the FY, you need to disclose the actual amount.

*6. Investment details:*
Details of investment qualifying for deduction under chapter VIA with bifurcation of details of investment made during the period from April 1, 2020 to June 30, 2020.