PRYD & Associates

16/03/2020

 Infosys Nilekani gave GST Network presentation to Council.
 Council ask Infosys to improve GST Network by July
 Decides to extend deadline for filing of GSTR9 & GSTR9C for FY18-19 till June 30, 2020,
 Filing to be mandatory for taxpayers over Rs 5cr of annual turnover
 GST Council to continue with 3B till September & defer the new return system.
 ouncil defers the proposal on taxability of economic surplus of brand owners of alcohol for human consumption,
 Reassures states towards payment of compensation dues,
 Where Cancellation have been cancelled till March 14, application for cancellation of revocation can be filed till June 30, 2020.
 GSTR-1 to be made compulsory only for making B2B supplies, exports & amendments
o B2C & non-filers of GSTR-3B to be exempted from filing GSTR-1
o Before 10th for turnover greater than Rs 1.5 cr
o Before 13th for turnover lesser than Rs 1.5 cr
o GSTR-2A to be generated on 14th of every month
 Council approves “Know your Supplier” Scheme
 Major Relief: Interest for delay in payment will now be charged on next cash liability under Section 50, to be applicable from July 2017
 Council Cuts Aircraft MRO Tax to 5% from 18%.
 Rates for all types of match sticks which are machine and handmade have been rationalised for 12% now
 Mobile phones to be taxed at 18 percent (current rate 12 percent)

01/02/2020

*Union BUDGET 2020*

*MAJOR TAX PROPOSALS*
*TAXPAYERs' CHARTER* in various Acts like Companies Act, for removing *harassment* of and protecting Taxpayers.

*DIRECT TAX-*

1. *VIVAD SE VISHWAS SCHEME IN INCOME TAX* - No interest & penalty if tax paid by 31st March 2020. Some additional amt. By 30th June.

2. Option to Individual without around 70 exemptions/ Deductions (With 1.5L Ch VIA Deductions) -

Till 5L - No Tax
5L - 7.5L - 10%
7.5L - 10L - 15%
10L - 12.5L - 20%
12.5L - 15L - 25%
More than - 30%

3. Prefiled tax return for individuals in new regime

4. *Dividend Distribution Tax - scrapped for companies* . Dividends to be charged to recipients.

5. New Electricity Generating Companies Corp Tax Rate 15%

6. 100% Tax exemption to foreign investment in priority sector.

7. Start Ups - ESOPs to employees to be taxable after 5 years or sale or as per other conditions.

8. Turnover limit for exemption for Start Ups now 100 Cr.

9. Options for Co-operative Socities: Co-operatives can choose a 22 percent tax with 10 percent surcharge and 4 percent cess with no exemptions.

10. TAX AUDIT THRESHOLD LIMIT -

- Increased to 5 Cr. But with business with cash transaction of not more than 5%

11. Tax Holiday to developers of affordable housing extended by 1 year.

12. Limit of difference with circle can be 10% now (up from 5%)

13. Faceless *Appeals* on lines of Faceless *Assessments*

01/02/2020

31/01/2020

The Central Board of Indirect Taxes and Customs ( CBIC ) has extended the Due Date for furnishing GST Annual Return and Reconciliation Statement (GSTR-9 / 9A and GSTR-9C) for FY 2017-18. The CBIC said that, Considering the difficulties being faced by taxpayers in filing GSTR-9 and GSTR-9C for FY 2017-18 it has been decided to extend the due dates in a staggered manner for different groups of States to 3rd, 5th and 7th February 2020 as under.

Group 1: Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Puducherry, Telangana, Andhra Pradesh, Other Territory – 3rd February 2020

Group 2: Jammu and Kashmir, Himachal Pradesh, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Rajasthan, Gujarat- 5th February 2020.

Group 3: Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Andaman & Nicobar Islands, Jharkhand, Odisha, Chhattisgarh, Dadra and Nagar Haveli and Daman and Diu, Lakshadweep, Madhya Pradesh, Uttar Pradesh- 7th February 2020

02/09/2019

Some income tax changes announced in this year's Budget comes from September 1, 2019. The full Budget for this year was presented in July this year. Cash withdrawals exceeding ₹1 crore in aggregate in a year from finance institutions will attract TDS while in case of property transactions the definition of immovable property has been widened to include charges like club membership fee and car parking fee for TDS levy. Also, in another income tax rule change, a higher TDS will be levied if life insurance maturity proceeds received are taxable in your hands.

Here are 5 changes in income tax rules that come into effect from September 1:

1) The government has introduced a new Section called 194N in income tax laws under which cash withdrawals exceeding ₹1 crore in aggregate in a year from banks, post offices or co-operative society engaged in carrying on the business of banking will attract a TDS @2. Payments made on or after September 1 will attract the provisions of Section 194N.

The income tax department has clarified that cash withdrawal prior to 1 September, 2019, will not be subjected to TDS under Section 194N. However, since threshold of ₹1 crore is with respect to the previous year, the calculation of amount of cash withdrawal for triggering deduction under section 194N will be counted from 1 April, 2019.

2) The government has amended 194-IA of Income Tax Act to include all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to transfer of the immovable property, under immovable property, for levy of TDS. This comes into effect from 1 September. It is to be noted that the TDS is levied @1% if the value of the property exceeds ₹50 lakh. So now, charges like club membership fee, car parking fee, electricity or water facility fee will also be included for calculation of TDS.

3) The government has introduced a new Section called 194M in income tax laws under which individual is required to deduct TDS @5% for paying a sum in excess of ₹50 lakh for carrying out any work in pursuance of a contract or by way of fees for professional services during a financial year. Payments made on or after September 1 will attract the provisions of Section 194M.

4) A higher TDS of 5%, from 1% earlier, will be levied if life insurance maturity proceeds received that are taxable in your hands. According to current tax laws, if the annual premium paid on the insurance policy is less than 10% of the sum assured the amount received on maturity are exempt from tax. (For insurance policies purchased before April 2012, the premium must be less than 20% of the sum assured to get the tax benefit on maturity).

It is to be noted that TDS is levied if the maturity proceeds exceeds ₹1 lakh.

5) In Budget 2019, Finance Minister Nirmala Sitharaman had proposed to allow interchangeability between Permanent Account Number (PAN) and Aadhaar with effect from 1 September 2019.

Those who don't have PAN can quote Aadhaar in transactions that otherwise require quoting of PAN like cash deposit above ₹50,000.

14/08/2019

All communication from Income Tax Department will have compulsory Document Identification Number (DIN) from 1 October 2019

Read more at https://www.expertmile.com/articles/3135

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All communication from Income Tax Department will have compulsory Document Identification Number (DIN) from 1 October 2019

11/11/2015

Happy Diwali