Updates for Rising Chartered's

07/11/2021

How much gold u can keep at Home:

India's infatuation with gold has been there for a long time and over the years it has only grown stronger. No wonder, Indians consume the most gold globally. Real estate and gold make up almost two-thirds of Indian household savings. For Indians, gold is considered more than an investment. Hence, it has found a significant place in their homes.

However, according to the Income Tax rules, there is a limit on how much gold one can keep at home. Kapil Rana, Founder, and Chairman, HostBooks Ltd, says, 'For storage of household gold no justification is needed on one's income status if the parameters mentioned for different categories of people such as individuals like married women, unmarried women, and a male member of the family are fulfilled.'

A married woman can hold up to 500 grams of gold, whereas, an unmarried woman can hold up to 250 grams of gold, even if they fail to produce their income proof. Male members are allowed to hold only 100 grams of gold without justifying their income status.

Hence, the Income Tax Department will not seize jewelry and ornaments to the extent of 500 gms for married lady, 250 gms for unmarried lady, and 100 gm for the male member, even if the same does not seem to be matching with the income record of the assessee.

In a Central Board of Direct Taxes (CBDT) press release dated December 1, 2016, it was clarified that there is no limit on holding of gold jewelry or ornaments by anybody provided it is acquired from explained sources of income, including inheritance. Hence, the Income Tax Act does not prescribe any limit for holding gold and ornament by any person, given you are able to show/explain valid sources of the gold acquired.

What happens if you keep gold beyond such limits at home

As long as you are able to provide the source of acquisition of gold or jewelry, there is no limit for holding gold jewelry or ornaments by anybody. In other words, if that individual person keeps gold beyond such limits at home then he/she should be able to explain the source of income from which the gold is being acquired.

In case, if the holding is in excess, one has to consider for the source of income, proof of investment will help you in establishing the source of investment against your income tax return. Apart from the tax invoices that you would keep, it is a little tricky that what kind of proof is necessary in case of inheritance and gifts. To specify more, experts suggest, in case of inheritance or gift, details like a gift deed or receipts with the name of the initial owner of the item may be needed, or one can produce a family settlement deed, Will, or a special gift deed stating the transfer of such item in the owner's hand.

07/11/2021

05/11/2021

24/10/2021

*S-194-O Payment of certain sums by e-commerce operator to e-commerce participant*

Where Sale of goods or provision of services of an e-commerce participant is facilitated by an e-commerce operator through its digital or electronic facility or platform (by whatever name called),

such e-commerce operator shall, at the time of credit of amount of sale or services or both to the account of an e-commerce participant or at the time of payment thereof to such e-commerce participant by any mode, whichever is earlier,

deduct income-tax at the rate of 1% of the gross amount of such sales or services or both.

*Explanation*
For the purposes of this sub-section, any payment made by a purchaser of goods or recipient of services directly to an e-commerce participant for the sale of goods or provision of services or both, facilitated by an e-commerce operator, shall be deemed to be the amount credited or paid by the e-commerce operator to the e-commerce participant and shall be included in the gross amount of such sale or services for the purpose of deduction of income-tax under this sub-section.

No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of an e-commerce participant, being an individual or HUF, where the gross amount of such sale or services or both during the previous year does not exceed Rs. 5 Lakhs and such e-commerce participant has furnished his PAN/ AADHAAR to the e-commerce operator.

A transaction in respect of which tax has been deducted by the e-commerce operator or which is not liable to deduction under this section, shall not be liable to tax deduction at source under any other provision of this Chapter.

For the purposes of this section, e-commerce operator shall be deemed to be the person responsible for paying to e-commerce participant.

*electronic commerce* means the supply of goods or services or both, including digital products, over digital or electronic network;

*e-commerce operator* means a person who owns, operates or manages digital or electronic facility or platform for electronic commerce;

*e-commerce participant* means a person resident in India selling goods or providing services or both, including digital products, through digital or electronic facility or platform for electronic commerce;

*services* includes "fees for technical services" and fees for "professional services", as defined in the Explanation to section 194J.

29/09/2021

*RECAP on S-80D of IT Act, 1961*

Amount paid (in any mode other than cash) by an individual or HUF

- to LIC/ other insurer for health insurance of specified person*.
- to the Central Government health scheme and/or on account of preventive health check-up.

*Deduction Allowed:-*

*In case of Individual, amount paid:*

a) For self, spouse and dependent children: Rs. 25,000 (Rs. 50,000 if specified person is a senior citizen)

b) For parents: additional deduction of Rs. 25,000 shall be allowed (Rs. 50,000 if parent is a senior citizen)

*In case of HUF*, premium up to Rs. 25,000 (Rs. 50,000 if person insured is a senior citizen) paid to insure any member of the family.

*specified person means:-

- In case of Individual- Self, Spouse, dependent children or parents

- In case of HUF- Any member thereof

*Note:-*

1. Deduction for preventive health check-up shall not exceed in aggregate Rs. 5,000.

2. Payment on account of preventive health check-up may be made in cash.

3. Within overall limit, deduction shall also be allowed upto Rs. 50,000 *towards medical expenditure* incurred on the health of specified person provided such person is a senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person.

4. "Senior citizen" means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.

27/09/2021

*TDS on Cash Withdrawals!! All about S-194N of IT Act, 1961*

Payer - Banking Company, Co-op. Society or Post Office.

Payee - Any Person {including NR}

Type of Payment - Cash withdrawn from one or more accounts maintained

Time of Deduction - Payment of cash

TDS Rate - 2 % of amount in excess of limit
Limit > 1,00,00,000 {1 Crore}

Recipient who has not filed R.O.I. for all of the 3 AY’s relevant to 3 PY’s, for which the time limit to file R.O.I. u/s. 139(1) has expired, immediately preceding the PY in which cash is withdrawn. The provisions will be modified as below –

Limit > 20,00,000 {20 Lakhs}
Upto 20,00,000 - No TDS
> 20,00,000 and < 1,00,00,000 - 2% TDS
> 1,00,00,000 - 5% TDS
Effective from On or after 01.07.2020

The limit of Rs 1 crore has to be seen for cash withdrawals made from all branches of a bank.
The cash withdrawals from two different banks shall not be aggregated for the limit of ₹ 1 Crore.

No TDS on payment made to Central or State Government/ Banks/ Co-op. Banks/ Post Office/ Banking correspondents/ ATM operators/ Commission agent or trader, operating under Agriculture Produce Market Committee (APMC)

27/09/2021

List of relatives covered Section 56(2)(VII) of the Income Tax Act,1961. As per Section 56(2)(VII) if any gift received from relative which are covered under following list will be exempt in the hands of receiver.

21/09/2021

*TCS Provision on Sale of Goods - RECAP*

```S-206C(1H) of IT Act, 1961```

Seller receiving consideration for sale goods of value exceeding Rs. 50 L in any PY

*Other than*
1. goods exported
2. goods covered in sub-section (1) , (1F) , (1G)

shall, at the time of receipt of such amount, *collect from the buyer*, a sum equal to 0.1 % of the *sale consideration exceeding Rs. 50 L as income-tax*

Providing PAN/ AADHAAR to seller is Compulsory

*IF NOT:-*
TCS should be collected @ 1% (S-206CC)

*Non – Applicability:*
If buyer is liable to TDS under any other provision of this Act on the goods purchased by him from the seller and has deducted such amount.

*Explanation:*

*Seller* means:

Person whose *Turnover from the business exceed Rs. 10 Cr during FY immediately preceding FY* in which the sale of goods is carried out

(Not being a person as the CG may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein)

*Buyer Excludes:*

1. CG, SG, an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; or
2. Local Authority
3. Person importing goods into India or any other person as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein.

21/09/2021

*RECAP on Compulsory Maintenance of books of account - Business or profession*

```S-44AA of IT Act, 1961```

*PART-A*
Persons carrying on *specified profession* shall maintain records if the gross receipts exceeds/ likely to exceed Rs. 1.5L in 3 preceding years for an existing profession.

*Specified Professions:*
• Legal
• Medical
• Engineering
• Architectural
• Interior decoration
• Accountancy
• Technical consultancy
• Film artists (includes a producer, editor, actor, music director, dance director, art director, cameraman, singer, lyricist, story writer, screenplay, costume designer, or dialogue writer)

*PART-B*
Every person carrying on business or profession [other than above] shall maintain BOA enabling AO to compute his TI if:

(i) his PGBP exceeds Rs. 1.2L (Rs. 2.5 L for I/HUF) or his T/O exceeds Rs. 10 L (Rs. 25L for I/HUF) in any one of the 3 years immediately preceding the PY; or

(ii) where the business or profession is newly set up in any PY, if his PGBP is likely to exceed Rs. 1.2L (Rs. 2.5 L for I/HUF) or his T/O is likely to exceed Rs. 10 L (Rs. 25L for I/HUF) during such PY; or

(iii) where Profits under S-44AE/ S-44BB/ S-44BBB has claimed to be lower than the profits deemed to be the profits and gains of his business during such PY; or

(iv) where the provisions of of S-44AD (4) are applicable and his income exceeds the maximum amount which is not chargeable to income-tax in any PY

*Penalty of Violation: Rs. 25,000 (S-271A)*