Mohit K Bansal & Co. Chartered Accountant

23/03/2024

savings citizen #

*"A Senior Citizens' Guide to Tax Saving in 2023-2024: Comparing SCSS and Tax-Saver FDs"*

Senior citizens seeking fixed income investments who aim to save on taxes while considering other aspects like interest rates and tenure may have a choice to make between investing in the Senior Citizen Savings Scheme (SCSS) or tax-saving fixed deposits (FDs).

The comparison between the two options was made based on several factors like interest rates, tenure, investment limits, tax benefits and rules, risk and guarantees, and premature withdrawals. SCSS currently offers an interest rate of 8.2% per annum, while tax-saving FDs in prominent banks like YES Bank offer up to 8% interest for senior citizens, with other banks offering rates ranging from 6.5% to 7.9%.

Both SCSS and Tax-saving FDs have a tenure of five years, with SCSS offering the option to extend for an indefinite period in three-year blocks. The minimum investment in SCSS is Rs 1,000 with a maximum limit of Rs 30 lakhs. Tax-saving FDs also have a minimum investment of Rs 1,000 but a lower maximum limit of Rs 1.5 lakhs for tax benefits.

Both SCSS and tax-saving FDs offer a tax deduction of up to Rs 1.5 lakhs per year under Section 80C of the Income Tax Act, 1961. However, fresh investments are needed each financial year to avail of these benefits. It is important to note that the interest earned is fully taxable, with TDS applicable if the interest exceeds Rs 50,000 annually. SCSS is backed by the Union government, providing a sovereign guarantee, while tax-saving FDs in scheduled banks are insured up to Rs 5 lakhs under the Deposit Insurance Credit Guarantee Corporation's scheme, covering both principal and interest amounts.

SCSS allows premature withdrawal with penalties ranging from 1% to 1.5% based on the tenure, whereas tax-saving FDs typically do not allow premature withdrawal.

Considering the comparison between the two investment options and keeping in mind slightly higher interest rates, premature withdrawal options, and government backing, SCSS might be a favorable option for senior citizens willing to save on taxes while ensuring stable returns and risk protection. However, before investing in either of the two options, assessing the financial goals and risk tolerance is crucial.

16/09/2022

MCA (85) of CA2013

28/06/2022

*GST Council Meet decisions - 28th June 2022: Sources*

1. GST Council decides to ease compliance for taxpayers.

2. Council decides to waive requirement for filling refund claims by condoning the 2 yr COVID period between 1st March 2020 till 28th Feb 2022.

3. Council decides to permit tax authorities to file appeals against erroneous refund by not considering the 2 years period.

4. Council decides to extend timeline for filing GSTR 4 for FY22 without late fees by composition dealers likely to be extended to 28th July; earlier deadline was 30th June.

5. Council agrees to extend due date of filing of FORM GST CMP-08 for composition taxpayers for Q1 of FY23 from 18 July to 30 July.

6. Council agrees to amend Rules to ease procedure for filing of refund claim w.r.t export of electricity.

7. GSTC allows for money in E-credit & E-cash ledgers to be used to pay output tax dues in returns.

8. Amounts available in E-credit & E-cash ledgers cannot be used to pay penalty, interest or fees.

9. Auto-populations of GSTR3B & annual returns to be allowed for better compliance.

10. New return filling system to be withdrawn, no longer relevant.

11. GSTC took up a comprehensive review of national anti-profiteering authority.

12. GSTC told that solicitor general to defend NAA in cases where its constitutional validity is challenged.

13. GSTC agree to ease refund claims process under inverted duty structure for select concessional goods.

14. Govt. may soon appeal in SC cases where NAA has been remanded by state high courts against orders.

15. GSTC told NAA has setup panel of advocates to ensure justice to consumers where profiteering has occurred.

16. Annual return form for FY22 may be notified with minimal charges.

17. Annual return forms for FY22 to continue with some relaxations/modifications.

18. No need to file annual return in form GSTR-9/9A with threshold of Rs.2 cr for the FY22.

19. GST Council agrees to ease compliance bottlenecks for e-commerce suppliers.

20. GST Council allows e-commerce suppliers to register under composition scheme, to ease registration & reduce tax outgo.

21. GST Council allows amendments in GSTR3B(monthly GST return to be filed by taxpayers).

22. GST Council allows govt run NIC as another platform to register e-invoices.

23. Council agrees to have 6 invoice registration portal to come in action in next 6 months.

24. Council agrees to empower both Centre & State to issue show cause notice despite whether the taxpayer doesn’t fall in their jurisdiction, measure to plug leakage.

08/02/2022

Taxation of shares

15/10/2021

18/09/2021

In view of the difficulties being faced by the taxpayers, the Central Govt has extended certain timelines. CBDT Notification No. 113 of 2021 in S.O. 3814(E) dated 17th September, 2021 issued which is available on incometaxindia.gov.in

18/09/2021

Major law and procedural related changes recommended by the GST Council in it's 45th Meeting:

1. Interest is to be paid on “ineligible ITC availed and utilized” at 18% w.e.f. 01.07.2017.

2. Late fees will be auto-populated for delay in filling of GSTR 1.

3. Aadhaar authentication will be mandatory for claiming refund claim and for filling application for revocation of cancellation of registration.

4. If Turnover is more than Rs. 5 crores then ITC 04 will be fillied once in six months. Whereas for others only once in a year.

5. Refund to be disbursed in the bank account, which is linked with same PAN on which registration has been obtained under GST.

6.with effect from 01.01.2022, GSTR 1 can not be filled if GSTR 3B is not filled

7. Restriction on availment of ITC after notifing the proposed clause (aa) of section 16(2) of CGST Act, 2017. You can claim ITC on the basis of GSTR 2B.

8. Unutilized balance in CGST and IGST cash ledger may be allowed to be transferred between distinct persons

09/09/2021

Tax Returns Date Extension

29/08/2021

CBDT extends due dates for electronic filing of various Forms under the Income-tax Act, 1961*

On consideration of difficulties reported by the taxpayers and other stakeholders in electronic filing of certain Forms under the provisions of the Income-tax Act,1961 read with Income-tax Rules,1962 (Rules), Central Board of Direct Taxes (CBDT) has decided to further extend the due dates for electronic filing of such Forms. The further details are as under:



The application for registration or intimation or approval under Section 10(23C), 12A, 35(1)(ii)/(iia)/(iii) or 80G of the Act in Form No. 10A required to be filed on or before 30th June, 2021, as extended to 31st August, 2021 vide Circular No.12 of 2021 dated 25.06.2021, may be filed on or before 31st March, 2022;


The application for registration or approval under Section 10(23C), 12A or 80G of the Act in Form No.10AB, for which the last date for filing falls on or before 28th February, 2022 may be filed on or before 31st March, 2022;


The Equalization Levy Statement in Form No.1 for the Financial Year 2020- 21, which was required to be filed on or before 30th June, 2021, as extended to 31st August, 2021 vide Circular No.15 of 2021 dated 03.08.2021, may be filed on or before 31st December, 2021;


The Quarterly statement in Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30th June, 2021, required to be furnished on or before 15th July, 2021 under Rule 37BB of the Rules, as extended to 31st August, 2021 vide Circular No.15 of 2021 dated 03.08.2021, may be furnished on or before 30th November, 2021;


The Quarterly statement in Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30th September, 2021, required to be furnished on or before 15th October, 2021 under Rule 37BB of the Rules, may be furnished on or before 31st December, 2021;




Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending 30th June, 2021, which was originally required to be uploaded on or before 15th July, 2021, and subsequently by 31st August, 2021, as per Circular No.12 of 2021 dated 25.06.2021, may be uploaded on or before 30th November, 2021;


Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending 30th September, 2021, which is required to be uploaded on or before 15th October, 2021, may be uploaded on or before 31st December, 2021;


Intimation to be made by Sovereign Wealth Fund in respect of investments made by it in India in Form II SWF for the quarter ending on 30th June, 2021, required to be made on or before 31st July, 2021 as per Circular No.15 of 2020 dated 22.07.2020, as extended to 30th September, 2021 vide Circular No.15 of 2021 dated 03.08.2021, may be made on or before 30th November, 2021;




Intimation to be made by Sovereign Wealth Fund in respect of investments made by it in India in Form II SWF for the quarter ending on 30th September, 2021, required to be made on or before 31st October, 2021 as per Circular No.15 of 2020 dated 22.07.2020, may be made on or before 31st December, 2021;


Intimation to be made by a Pension Fund in respect of each investment made by it in India in Form No. 10BBB for the quarter ending on 30th June, 2021, required to be made on or before 31st July, 2021 under Rule 2DB of the Rules, as extended to 30th September, 2021 vide Circular No. 15 of 2021 dated 03.08.2021, may be made on or before 30th November, 2021;




Intimation to be made by a Pension Fund in respect of each investment made by it in India in Form No. 10BBB for the quarter ending on 30th September, 2021, required to be made on or before 31st October, 2021 under Rule 2DB of the Rules, may be made on or before 31st December, 2021;


Intimation by a constituent entity, resident in India, of an international group, the parent entity of which is not resident in India, for the purposes of sub-section (1) of section 286 of the Act, in Form No.3CEAC, required to be made on or before 30th November, 2021 under Rule 10DB of the Rules, may be made on or before 31st December, 2021;


Report by a parent entity or an alternate reporting entity or any other constituent entity, resident in India, for the purposes of sub-section (2) or sub-section (4) of section 286 of the Act, in Form No. 3CEAD, required to be furnished on or before 30th November, 2021 under Rule 10DB of the Rules, may be furnished on or before 31st December, 2021;

Intimation on behalf of an international group for the purposes of the proviso to sub-section (4) of section 286 of the Act in Form No. 3CEAE, required to be made on or before 30th November, 2021 under Rule 10DB of the Rules, may be made on or before 31st December, 2021.

CBDT Circular No. 16/2021 in F.No.225/49/2021/ITA-II dated 29.08.2021 issued.

27/08/2021

27/08/2021

Implementation of Rule-59(6) on GST Portal
From 01/09/2021
Registered person shall not be allowed to furnish FORM GSTR-1/IFF
If he has not furnished FORM GSTR-3B for preceding 2 months (Non QRMP)
OR
If he has not furnished FORM GSTR-3B for preceding quarter (QRMP)