Mayur Bhatia & Co.,

14/05/2025

Changes in ITR Forms for Financial Year 2024-25

Income tax return forms 2025-26: The income tax department has notified the ITR forms for the FY 2024-25 (AY 2025-26). The utilities to file the tax return are yet to be released. However, this year, ITR forms come with the changes that were announced in the Budget 2024. Know the nine changes in ITR...

15/08/2022

Wish you all a very Happy Independence Day.

MAYUR BHATIA AND COMPANY
CHARTERED ACCOUNTANTS

26/04/2020

This year our Hon'ble Finance Minister has presented two different types of tax regime for the individuals. The same has been mentioned as the old and new tax regime. In the below link, you can get updated about both the regimes and select the same for the financial year 2020-21.

https://mayurbhatia68.wordpress.com/2020/04/26/income-tax-old-and-new-regime-for-individuals-for-financial-year-2020-21/

Furthemore, in case of any queries and questions, please contact us on [email protected] or on our telephone number + 91-7351 88 5877

A new tax regime has been brought by the Finance Act, 2020 for individuals and Hindu Undivided Family (HUF’s) which has provided to make sure that it simplifies the income tax compliance from indiv…

27/03/2019

India Enters Uncharted Tax Territories from April 1, 2019

From April 1, 2019 the taxation scheme in India is changing dramatically as the taxman will be having a comprehensive look on the profiles of the Indian tax-payers.

The taxman will be looking at the profiles of tax-payers and to avoid evasion of tax by looking at the spending patterns of the tax payers mismatching their earning declarations in the income tax return.

As per a report, the Income-Tax Department has been going beyond the traditional ways to catch the evaders and would gathering information from various visual and other ways.

The BIG DATA is finally here-

The I-T department has already given a go-ahead to the taxman to access the Insight portal. The taxman will be having the information from the social media profile and use bid data to deduce the mismatch between your earnings and your spending. In case of mismatches the next step could be a income tax notice, raid to your places.

The project is set to be operational from April 1, 2019 and the I-T department has set up various new functionalities that could over time make tax evasion almost impossible. The process shall be applicable for both the new return-filers as well as the non-filers and also the current income-tax return filers.
Big Data will help the taxman to have a master profile of the tax-payers and the purpose for the same is to increase income tax net.

A report suggests that the process will that the data gleaned from insight will be segregated. The master profile of the taxpayer will include his/her address, signature and I-T return profile. There is a separate business intelligence functionality for the non-compliant taxpayers.

A geographic information system will also be enabled to zero on a specific area for more focused action.

The Insight project will feature an integrated information management system, which will harness machine learning to help tax the right step at the right time.
Finally, India will be joining a selected league of countries like Belgium, Canada and Australia that are already using Big Data to avoid tax evasion.

An article written by CA Mayur Bhatia

20/03/2019

GST Council in the 34th meeting held on 19th March, 2019 at New Delhi discussed the operational details for implementation of the recommendations made by the council in its 33rd meeting for lower effective GST rate of 1% in case of affordable houses and 5% on construction of houses other than affordable house. The council decided the modalities of the transition as follows.

Option in respect of ongoing projects:

The promoters shall be given a one -time option to continue to pay tax at the old rates (effective rate of 8% or 12% with ITC) on ongoing projects (buildings where construction and actual booking have both started before 01.04.2019) which have not been completed by 31.03.2019.

The option shall be exercised once within a prescribed time frame and where the option is not exercised within the prescribed time limit, new rates shall apply.

New tax rates:

The new tax rates which shall be applicable to new projects or ongoing projects which have exercised the above option to pay tax in the new regime are as follows.

(i) New rate of 1% without input tax credit (ITC) on construction of affordable houses shall be available for,

All houses which meet the definition of affordable houses as decided by GSTC (area 60 sqm in non- metros / 90 sqm in metros and value upto RS. 45 lakhs), and

Affordable houses being constructed in ongoing projects under the existing central and state housing schemes presently eligible for concessional rate of 8% GST (after 1/3rd land abatement).

(ii) New rate of 5% without input tax creditshall be applicable on construction of,-

All houses other than affordable houses in ongoing projects whether booked prior to or after 01.04.2019. In case of houses booked prior to 01.04.2019, new rate shall be available on installments payable on or after 01.04.2019.
All houses other than affordable houses in new projects.

Commercial apartments such as shops, offices etc. in a residential real estate project (RREP) in which the carpet area of commercial apartments is not more than 15% of total carpet area of all apartments.

Conditions for the new tax rates:

The new tax rates of 1% (on construction of affordable) and 5% (on other than affordable houses) shall be available subject to following conditions,-

Input tax credit shall not be available,
80% of inputs and input services (other than capital goods, TDR/ JDA, FSI, long term lease (premiums)) shall be purchased from registered persons. On shortfall of purchases from 80%, tax shall be paid by the builder @ 18% on RCM basis. However, Tax on cement purchased from unregistered person shall be paid @ 28% under RCM, and on capital goods under RCM at applicable rates.

Transition for ongoing projects opting for the new tax rate:

Ongoing projects (buildings where construction and booking both had started before 01.04.2019) and have not been completed by 31.03.2019 opting for new tax rates shall transition the ITC as per the prescribed method.

The transition formula approved by the GST Council, for residential projects (refer to Para 4(ii)) extrapolates ITC taken for percentage completion of construction as on 01.04.2019 to arrive at ITC for the entire project. Then based on percentage booking of flats and percentage invoicing, ITC eligibility is determined. Thus, transition would thus be on pro-rata basis based on a simple formula such that credit in proportion to booking of the flat and invoicing done for the booked flat is available subject to a few safeguards.

For a mixed project transition shall also allow ITC on pro-rata basis in proportion to carpet area of the commercial portion in the ongoing projects (on which tax will be payable @ 12% with ITC even after 1.4.2019) to the total carpet area of the project.
Treatment of TDR/ FSI and Long term lease for projects commencing after 01.04.2019

The following treatment shall apply to TDR/ FSI and Long term lease for projects commencing after 01.04.2019.

Supply of TDR, FSI, long term lease (premium) of land by a landowner to a developer shall be exempted subject to the condition that the constructed flats are sold before issuance of completion certificate and tax is paid on them. Exemption of TDR, FSI, long term lease (premium) shall be withdrawn in case of flats sold after issue of completion certificate, but such withdrawal shall be limited to 1% of value in case of affordable houses and 5% of value in case of other than affordable houses. This will achieve a fair degree of taxation parity between under construction and ready to move property.

The liability to pay tax on TDR, FSI, long term lease (premium) shall be shifted from land owner to builder underthe reverse charge mechanism (RCM).

The date on which builder shall be liable to pay tax on TDR, FSI, long term lease (premium) of land under RCM in respect of flats sold after completion certificate is being shifted to date of issue of completion certificate.

The liability of builder to pay tax on construction of houses given to land owner in a JDA is also being shifted to the date of completion. Decisions from para 7.1 to 7.4 are expected to address the problem of cash flow in the sector.

Amendment to ITC rules:

ITC rules shall be amended to bring greater clarity on monthly and final determination of ITC and reversal thereof in real estate projects. The change would clearly provide procedure for availing input tax credit in relation to commercial units as such units would continue to be eligible for input tax credit in a mixed project.

The decisions of the GST Council have been presented in this note in simple language for easy understanding. The same would be given effect to through Gazette notifications/ circulars which alone shall have force of law.

Regards
MAYUR BHATIA & Co;
Chartered Accountants

11/02/2019

Dear All,

Please find attached herewith the budget highlights for the Finance Bill, 2019 presented on February 1, 2019

24/11/2018

https://m.economictimes.com/news/et-explains/fastag-how-gst-will-cruise-ahead-with-new-age-tech/articleshow/66782316.cms?utm_source=facebook.com&utm_medium=Social&utm_campaign=ETFBMain

It employs Radio Frequency Identification (RFID) tech for making toll payments directly from the account linked.

24/11/2018

Income Tax Updates - Changes made by CBDT in case of PAN Applications

As per notification No 82/2018 dated November 19, 2018, the Central Board of Direct Taxes (CBDT) has made changes for the new PAN applications to be filed with the department: For individual assess…

15/07/2018

Dear Sir/Mam,

We are please to inform you that we have shifted to our new office and we will start working from tomorrow i.e. July 16th, 2018.

The new correspondence address for Mayur Bhatia & Co is
Mandir Gurudwara Chowk,
Tyagi Market, Premnagar, Dehradun - 248007.

Regards
Mayur Bhatia & Co;
Chartered Accountants

14/05/2018

ITR 4, or commonly known as Sugam, is to be filed those by individuals and HUF who have opted for the presumptive income scheme for income earned from business and profession during the financial year 2017-18 under sections 44AD, 44ADA, and 44AE of the Income-tax Act, 1961 .

ITR form 4 is filed when gross receipts of professionals and self-employed should not exceed Rs 50 lakh during a financial year under section 44ADA. For non-professionals who earn income from business, to be eligible for the scheme, gross receipts in a financial year should not exceeding Rs 2 crore.

Individuals engaged in goods transportation businesses with not more than 10 good carriages can file ITR 4 if they have opted for presumptive income scheme under section 44AE.

This is not the first time the government has made modifications to ITR form 4. "Until FY 15-16, ITR form 4S was applicable for such class, then for FY 16-17 it was renamed as ITR 4 along with various other changes. Keeping with the trend, this year, too, various changes have been made in ITR 4, while the name of form remains unchanged.

Changes in ITR 4 include quoting of GST number and the amount of turnover as per GST return, the number of details of financial particulars has been increased, the codes for selecting nature of business or profession while filing return have been changed, and so on. Therefore, it is clearly evident that day by day, the department is increasing the reporting requirements allowing little wiggle room for tax evaders.

ITR-4 (Sugam), can be file in paper form if they satisfy the below mentioned conditions:
The individual is of age of 80 years or more at any time during the previous year; or, The individual or HUF's income does not exceed Rs 5 lakh and who has not claimed a refund while filing ITR.

Regards
Mayur Bhatia & Co