INCOME TAX NEWS

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TAX PLANNING FOR FY 2022-23 ( AY 2023-24 )
Comprehensive Article on Income tax changes in Rules, Rates , Slabs , Rebates and Estimation

CLICK HERE TO READ

YOU CAN LINK YOUR AADHAAR WITH PAN ON-LINE , THROUGH SMS AND ALSO OFF-LINE .
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LATEST NEWS ON INCOME TAX

TO KNOW ABOUT LATEST NEWS ON IT RETURNS FOR AY 2021-22 , CLICK HERE

TCS ON FOREIGN TRAVEL & REMITTANCE
NEW NOTIFICATION EFFECTIVE FROM 1ST , OCTOBER 2023

Dated 26.09.203 : The revised scheme on collection of TCS ( Tax collected at source ) on Liberalized Remittance scheme ( LRS ) will become effective from 1st , October 2023 .

As per press release dated 28.06.2023 issued by Ministry of finance , TCS rates will be as follows from 1st , October 2023 :

1. TCS on LRS for Education purpose under a loan ( no change )
a. Up to Rs 7 lakhs : NIL %
b Above Rs 7 lakhs : 0.5 %

2. TCS on LRS for Medical Treatment : ( No change )
a. Up to Rs 7 lakhs : NIL %
b Above Rs 7 lakhs : 5.0 %

3. TCS on LRS for other purposes :
a. Up to Rs 7 lakhs : NIL % ( Earlier nil )
b Above Rs 7 lakhs : 20 % ( Earlier 5 %

4. Remittance on Overseas Tour package : 20 % ( earlier 5 % )

a. Up to Rs 7 lakhs : 5 % ( Earlier nil )
b Above Rs 7 lakhs : 20 % ( Earlier 5 %

To read the press release dated 28.06.2023 , CLICK HERE

TCS ON FOREIGN TRAVEL & REMITTANCE
FEMA Change and Clarifications ;

Dated 19.05.2023 : Finance Ministry issued a Gazette notification dated 16.05.2023 wherein rule 7 was omitted In the Foreign Exchange Management (Current Account Transactions) Rules, 2000 . The Rule 7 had given exemption to use of international Credit card from certain provisions of FEMA . Hence overseas credit card payments will come under the limits of Liberalized Remittance Scheme ( LRS ) . Under the LRS , residents can make INTERNATIONAL payment up to USD 2,50,000 PER YEAR .

Now Income tax department has given clarification dated 16.05.2023 on collection of TCS .

As per the clarification , TCS rate will be as follows from 01st , July 2023 :

1. TCS on Education purpose ( no change )
a. Up to Rs 7 lakhs : 0.5 %
b Above Rs 7 lakhs : 5.0 %

2. TCS on Medical Treatment : 5 .0 % ( no change )

3. Remittance on Overseas Tour package : 20 % ( earlier 5 % )

4. Remittance for any other purpose under LRS :  20 % ( earlier 5 % )

If a remittance does not come under LRS :

To avoid any procedural ambiguity, it has been decided by the IT department  that any payments by an individual using their international Debit or Credit cards upto Rs 7 lakh per financial year will be excluded from the LRS limits and hence, will not attract any TCS. ( Ref : Press release dated 16.05.2023 )

INCOME TAX DEPARTMENT ISSUES CLARIFICATIONS :

Dated 25.05.2023 : The Central Board of Direct Taxes ( CBDT ) has issued various clarifications on various ,matters like Liberalized Remittance Scheme ( LRS ) , On-line Gambling and Charitable & religious trusts .

For clarification on LRS , CLICK HERE

For clarification on ON-LINE GAMBLING , CLICK HERE

For clarification on CHARITABLE 7 RELIGIOUS TRUSTS , CLICK HERE

INCOME TAX CALCULATOR FOR FY 2023 -24 :

Dated 21.02.2023 : Finance Minister Ms Nirmala Sitharaman , while presenting the union budget , announced a new set of slabs of income tax for FY 2023 -24 under the new tax regime . Additional tax rebates were also announced under the new tax regime . ( For the details of Union Budget , click here )

Now to help the income tax payers in selecting either old regime or new regime for FY 2023-24 , Income tax department has published a new tool . One can feed the expected income and the rebates he is eligible for in both the old regime and new regime and find out how much tax he has to pay income tax . First you may fill tax payer as individual and the your Residential status .

To go the calculator , CLICK HERE

IT RETURN FORMS FOR FY 2022-23 ( AY 2023-24) NOTIFIED
Dated 14.02.2023 : Income Tax Return forms for FY 2022-23 ( AY 2023-24 ) , ITR-1 , ITR2 , ITR3 , ITR4 ,ITR5 & ITR6 are since notified by the income tax Department . For details , CLICK HERE

CO-BROWSING IN INCOME TAX PORTAL

INCOME TAX PORTAL TO HAVE A NEW FEATURE : CO-BROWSING

Dated 26.11.2022 : Now income Tax Department's e-portal has a new feature called co-browsing . Using the feature , tax payers can avail the services of help desk agents while browsing the portal .

During a co-browsing session :

Helpdesk agent gets an accurate visual representation of the Taxpayers browser screen.

Agents can also annotate the taxpayers view of the screen, help to fill out ITR forms, other Statutory forms, change settings, complete transactions, find help and reference materials for tax payers and even upload documents

Agents can help taxpayer to navigate, scroll, type text, and highlight areas of interest on the same browser tab in real-time.
Co-browsing is simple to use. It can be easily combined with live chat, phone to resolve the customer issue faster.

However Co-browsing does not allow the agent to see any other data on the taxpayers desktop or computer. Also, the Taxpayer need to approve the request before the agents can start the co-browsing session. Taxpayer can also end the co-browsing session at any time if they wish to terminate the discussion.

How to get start Co-Browsing session from Helpdesk agent end?

Agent will receive call & CRM pop up Infront of Agent.

Agent will talk to taxpayer and guide taxpayer where to locate co-browse button on income tax portal.
Taxpayer to generate PIN and share with Agent.

Agent to click on CB button on CRM which will take him to co browse URL.

Agent to enter PIN shared by taxpayer in screen displayed to Agent and click on start session button.

Once Agent clicks on Start Session button co-browse session will start & Agent can guide taxpayer.

After the Taxpayer gets the answers, he/she can click the STOP button anytime. Once the session has ended, the Agent will no longer see the Taxpayer's browser

How Co-browsing Works ?

When the taxpayer starts a session, the browser sends a request to the Co-Browser proxy.

The request is then modified in a way that it looks as if the original request came from corbrowse.incometax.gov.in.
This request is then sent to the original site that the leader wants to co-browse.
The website sends back the response to the Co-Browser proxy.
The Co-Browser proxy then modifies the data so that it can be loaded into an iframe that rests on top the original page.
Both the leader and the follower now interact with the website as it is loaded within the iframe. From this point, there’s only communication between the user’s browsers and the proxy, and the requests don’t continuously have to be sent to the original website anymore.

To know further details of the feature , visit Income Tax e-filing website , by CLICKING HERE

TIME LINE EXTENDED FOR SUBMISSION OF AUDIT REPORTS :

Dated 01.10.2022 : On consideration of difficulties faced by the taxpayers and others in filing audit reports for the Assessment Year 2022-23 , Central Board of Direct Taxes (CBDT) has decided to extend the due date for filing them which was 30 .09 2022 earlier to 07th October, 2022 .

To read Press Release of CBDT dated 30.09.2022 , CLICK HERE

INCOME TAX DEPARTMENT MAKES ELECTRONIC SUBMISSION OF CERTAIN FORMS MANDATORY :

Dated 17.07.2022 :    Income Tax department has prescribed   that the following Forms, returns, statements, reports, orders, by whatever name called, have to furnished electronically and have to be verified in the manner prescribed electronically :

FORM NO Description

1. 3CEF Annual Compliance Report on Advance Pricing Agreement

2. 10F Information to be provided under sub-section (5) of section 90 or sub-section (5) of
section 90A of the Income-tax Act, 1961
3. 101A Certificate of the medical authority for certifying 'person with disability, 'severe disability, 'autism', 'cerebral palsy' and 'multiple disability' for purposes of section 80DD and section 80U
4. 3BB Monthly statement to be furnished by a Stock Exchange in respect of transactions in
which client codes have been modified after registering in the system for the month of -

5. 3BC Monthly statement to be furnished by a Recognized Association in respect of transactions in which client codes have been modified after registering in the system for  the month of

6 . 10BC   Audit report under (sub-rule (1) of rule 17CA) of Income-tax Rules, 1962, in the case of an  electoral trust

7 10FC Authorization for claiming deduction in respect of any payment made to any financial institution located in a Notified jurisdictional area.
8. 28A    Intimation to the Assessing Officer under section 210(5) regarding the Notice of demand under section 156 of the Income -tax Act, 1961 for payment of advance tax under section 210(3)/210(4) of the Act
9. 27C Declaration under sub-section (1A) of section 206C of the Income-tax Act, 1961 to be made by a buyer for obtaining goods without collection of tax

10. 58D   Report to be submitted by a public sector company, local authority or an approved association or institution under section 35AC of the Income-tax Act, 1961 to the National Committee on a notified eligible project or scheme
11. 58C Report to be submitted under clause (i) of sub-section (4) of section 35AC of the Income- tax Act, 1961 to the National committee by an approved association or institution
12. 68 Form of application U/s 270AA(2) of the Income Tax Act, 1961

To go through the notification dated 16.07.2022 , CLICK HERE

TDS ON CRYPTOCURRENCY TRANSACTIONS

INCOME TAX ON CRYPTOCURRENCYTRANSACTIONS

TDS ON BITCOIN TRADING

TDS ON VIRTUAL DIGITAL ASSET FROM 1ST, JULY 2022 :
credit card reward points , mileage cards etc exempted

Dated 02.07. 2022 : Finance Act, 2022 inserted a new section 194S in the Act with effect from 1st July 2022. The new section mandates a person, who is responsible for paying to any resident any sum by way of consideration for transfer of a virtual digital asset (VDA), to deduct an amount equal to 1% of such sum as income tax thereon. The tax deduction is required to be made at the time of credit of such sum to the account of the resident or at the time of payment, whichever is earlier.

DIGITAL ASSETS NOT CONSIDERED AS VDA :
However the following virtual digital assets   shall be excluded from the definition of virtual digital asset:

(i) Gift card or vouchers, being a record that may be used to obtain goods or services or a discount on goods or services;
(ii) Mileage points, reward points or loyalty card, being a record given without direct monetary
consideration under an award, reward, benefit, loyalty, incentive, rebate or promotional program that may  be used or redeemed only to obtain goods or services or a discount on goods or services;
(iii) Subscription to websites or platforms or application

CUT-OFF LIMIT :

However TDS  is not required to be made in the following cases:-

(i) the consideration is payable by a specified person and the value or aggregate value of  such consideration does not exceed Rs 50,000 during the financial year; or
(ii) the consideration is payable by any person other than a specified person and the value or aggregate value of such consideration does not exceed ten thousand rupees during the financial year.

To read original notifications ,
Check CBDT Notification dated 30.06.2022   and Dated 28.06.2022

Read our article " CRYPTOCURRENCY TAXES IN INDIA " by clicking Here

SECTION 194S OF INCOME TAX ACT

Payment on transfer of virtual digital asset : SECTION 194S OF INCOME TAX ACT

194S. (1) Any person responsible for paying to any resident any sum by way of consideration for transfer of a virtual digital asset, shall, at the time of credit of such sum to the account of the resident or at the time of payment of such sum by any mode, whichever is earlier, deduct an amount equal to one per cent of such sum as income-tax thereon:

Provided that in a case where the consideration for transfer of virtual digital asset is--

(a) wholly in kind or in exchange of another virtual digital asset, where there is no part in cash; or

(b) partly in cash and partly in kind but the part in cash is not sufficient to meet the liability of deduction of tax in respect of whole of such transfer,

the person responsible for paying such consideration shall, before releasing the consideration, ensure that tax required to be deducted has been paid in respect of such consideration for the transfer of virtual digital asset.

(2) The provisions of sections 203A and 206AB shall not apply to a specified person.

(3) Notwithstanding anything contained in sub-section (1), no tax shall be deducted in a case, where--

(a) the consideration is payable by a specified person and the value or aggregate value of such consideration does not exceed fifty thousand rupees during the financial year; or

(b) the consideration is payable by any person other than a specified person and the value or aggregate value of such consideration does not exceed ten thousand rupees during the financial year.

(4) Notwithstanding anything contained in section 194-O, in case of a transaction to which the provisions of the said section are also applicable along with the provisions of this section, then, tax shall be deducted under sub-section (1).

(5) Where any sum referred to in sub-section (1) is credited to any account, whether called "Suspense Account" or by any other name, in the books of account of the person liable to pay such sum, such credit of the sum shall be deemed to be the credit of such sum to the account of the payee and the provisions of this section shall apply accordingly.

(6) If any difficulty arises in giving effect to the provisions of this section, the Board may, with the prior approval of the Central Government, issue guidelines for the purposes of removing the difficulty.

(7) Every guideline issued by the Board under sub-section (6) shall be laid before each House of Parliament, and shall be binding on the income-tax authorities and on the person responsible for paying the consideration on transfer of such virtual digital asset.

Explanation.—For the purposes of this section "specified person" means a person,--

(a) being an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business carried on by him or profession exercised by him does not exceed one crore rupees in case of business or fifty lakh rupees in case of profession, during the financial year immediately preceding the financial year in which such virtual digital asset is transferred;

(b) being an individual or a Hindu undivided family, not having any income under the head "Profits and gains of business or profession".]

PAN NUMBER NEEDED FOR OPENING CURRENT ACCOUNT :
Also required for depositing / withdrawing cash Rs 20 lakhs

Dated 11.05.2022 : Now quoting of PAN NUMBER is made mandatory if you want to open a current account with any bank or post office . If you want to deposit a total cash of Rs 20 lakhs or withdraw cash of Rs 20 lakhs from bank accounts in a financial year April to March , you have to necessarily quote your PAN Number . The amount of cash transactions is to be taken from all your bank accounts if you maintain multiple banking accounts . The rule also applies to co-operative banks .

F or details of Gazette notification , visit our : PAN CARD PAGE

NO TCS FROM OVERSEAS PERSONS FOR BOOKING FOREIGN TOUR PACKAGE

Dated 01.04.2022 : From October 1 , 2020 ,the seller of the overseas tour package in India had to collect additional amount of 5 % along with the tour package cost as an Advance Income Tax ( TCS - Tax Collected at Source ) ) from the buyer pf foreign tour package ,
. Further if buyer does not furnish PAN / Aadhaar number during the transaction , the percentage of such income tax collection would increase to 10 % instead of 5 % . .

Now Government has relaxed the above rule and will not apply if a buyer is an overseas person / Non resident Indian and hence tour operators need not collect TCS from them . .

The above relaxation is done by making amendment to Sec 206C of Income tax Act .

To read the Gazette notification , CLICK HERE

TDS ON SALARY FOR FY 2021-22 :

Dated 17.03.2022 : Income Tax Department has now come out with a detailed circular on the subject of " TAX TO BE DEDUCTED FROM SOURCE OF SALARY AND PENSIONS " for the Financial year 2021-22 . Some of the key instructions in the circular are :

1. Employers paying salary , pension and other perquisites have to deduct TDS  on the estimated income of the Employee / pensioners" for the financial year 202 1-22. The income-tax is required to be calculated on the basis of the tax slabs and to be be deducted at the time of each salary payment at the average rate . The tax deduction shall be made at the average rate of income tax on the amount payable, computed on the basis of the rates in force for the financial year in which the payment is made, on the estimated income under the head of Salary for that financial year.

2. Any employee intending to opt for the concessional rates of tax under section 115B AC of the  Act may intimate the employer .  If such intimation is not made by the employee. the employer shall make TDS without considering the provision of section 115B AC of the Act. The intimation so made to the employer shall be only for the purpose of  TDS during the previous year and can not be modified during that year.

3. Tax rebates eligible have to be taken in to account , while estimating the salary income . Employee has to provide a declaration along with proof of payment of eligible rebates to the employer . For the purpose of estimating income of the employee for computing tax deductions, section 192(2D) provides that employers have to obtain from the employees evidence or proof or particular of claims of rebates .

4. TDS collected should be remitted to the government before 7th of the next month except in March . TDS collected in the month of March can be remitted before 30th, April .

5 Employer  to furnish to the employee a certificate in Form 16  detailing the amount of TDS and certain other particulars. Rule 31 prescribe s that Form 16  should be furnished to the employee by 15th June after the end of the financial year in which the income was paid and tax deducted .  Form 12BA is also to be furnished in addition to Form 16 to the employee whose salary is more than 1,50,000 rupees .

6. Furnishing of PAN or Aadhaar number as the case may be, by the employee is compulsory in case of receipt of any sum or income or amount on which tax is deductible. If the employee fails to furnish his/her PAN or Aadhaar number, as the case may be, to the employer, the employer has been made responsible to make TDS at higher of the following rates:
1.  at the rate specified in the relevant provision of act
2. at the rate or rates in force;
or
3. at the rate of twenty per cent .

7. TDS ON PENSION :

As per section 17(I)(it) of the Income-tax Act. 1961, the term 'salary' includes pension. In the case of pensioners who receive their pension (not being family pension paid to a spouse) from a nationalized bank, the instructions contained in this circular shall apply in the same manner as they apply to Salary-income .

8 TDS ON FAMILY PENSION :

Family Pension is chargeable to tax under the head "Income from other sources" and   not under the head "Salaries". Therefore. provisions of section 192 of the Act are not applicable. Hence, employers are not required to deduct TDS on family pension paid to person.

READ OUR ARTICLE " TDS ON SALARY , PENSION AND PERQUISITES "

For the TAX SLABS FOR FY 2021-22 , CLICK Here

To know eligible TAX REBATES , CLICK HERE

For estimating Income tax payable both under old and new regime , CLICK HERE

To read the IT Department circular dated 15.03.2022 on TDS , CLICK HERE

FACELESS APPEAL SCHEME 2021 NOTIFIED

IT DEPARTMENT NOTIFIES FACELESS APPEAL SCHEME

30.12.2021 : Income Tax department has revised the earlier Faceless Appeal scheme and has issued fresh Notification (No. 139/2021 dated 28th December, 2021 in S.O. 5429(E)) notifying the Faceless Appeal Scheme, 2021 in supersession of the earlier Faceless Appeal Scheme, 2020 of Government of India.

Under the new scheme , No personal appearance in the Centres or Units is required or allowed . However an assessee will allowed a personal hearing through video conferencing . IT assessee or his representative , may request for personal hearing so as to make his oral submissions or present his case before the Commissioner (Appeals), through the National Faceless Appeal Centre, under this Scheme. The concerned Commissioner (Appeals) will allow the request for personal hearing and communicate the date and time of hearing to the appellant through the National Faceless Appeal Centre. Such hearing shall be conducted through video conferencing or video telephony, including use of any telecommunication application software which supports video conferencing or video telephony, to the extent technologically feasible, in accordance with the procedure laid down by the Board . Under the old scheme , permitting personal hearing was at the discretion of the concerned officials .

To read IT Department's Notification , CLICK HERE

E-VERIFICATION FOR IT RETURNS AY 20-21 : TIME LIMIT RELAXATION

Dated 30.12.2021 : . Now as a special case , IT Department has given  One-time relaxation for verification of all income tax-returns e-filed for the Assessment Year 2020-21 till February 28, 2022 .

Large number of electronically filed ITRs for the Assessment Year 2020-21 still remain pending with the Income-tax Departrnent for want of receipt of a valid  ITR-V Form at CPC, Bengaluru or pending e-Verification from the taxpayers concerned. As per IT Act , consequences of failure to verify the ITR within the time allowed is  significant as such an ITR is/can be declared non-est and legal recourse may begin .

But  it has been decided by the IT Department now to provide one-time relaxation   for submission of ITR-V/e-Verification for resolving the grievances of the taxpayers  associated with non-verification of ITRs for the Assessrnent Year 2020-21 and to  regularize such ITRs which have either become non-est or have remained pending  with Income-tax Department for want of receipt of respective ITR-V Form or pending  e-Verification.

Therefore, in respect of all lTRs for Assessment Year 2020-21 which  were uploaded electronically by the taxpayers within the time allowed and which have remained incomplete due to non-submission of ITR-V Form pending e-Verificationn , IT Department has  permitted verification of such returns either by sending a duly signed physical copy of ITR-V to CPC, Bengaluru  through speed post or through EVC/OTP modes . Such  verification process must be completed by 28.02.2022.

For IT Department circular on the matter , CLICK HERE

To know how to E-Verification your IT Return , CLICK HERE

NEW ANNUAL INFORMATION STATEMENT ( AIS ) ROLLED OUT

Dated 02.11.2021 : Income Tax Department has rolled out the new Annual Information Statement (AIS) on the new Income tax e-filing Portal which provides a comprehensive view of information to a taxpayer with a facility to capture online feedback.

The new AIS includes additional information relating to interest, dividend, securities transactions, mutual fund transactions, foreign remittance information etc.  If the taxpayer feels that the information is incorrect, relates to other person/year, duplicate etc., a facility has been provided to submit online feedback.
New AIS contains a simplified Taxpayer Information Summary (TIS) which shows aggregated value for filing Income tax returns  . The derived information in TIS will be used for pre-filling of Return .   Annual Information Statement (AIS) includes information presently available with the Income Tax Department. There may be other transactions relating to the taxpayer which are not presently displayed in Annual Information Statement (AIS). Hence Taxpayers are asked to check all related information and report complete and accurate information in the Income Tax Return.
Income Tax department has asked taxpayers to view the information shown in Annual Information Statement (AIS) and provide feedback if the information needs modification. The value shown in Taxpayer Information Summary (TIS) may be considered while filing the ITR. In case the ITR has already been filed by an IT payer and some information has not been included in the ITR, the return may be revised to reflect the correct information.

As the AIS is new and not tested for accuracy , the tax payers are asked to rely on Form 26AS while submitting the returns . However they can go through the AIS and provide feedback on the information available on AIS so that Income tax department correct the information given .

To read the press release with regard to New AIS , CLICK HERE   To know how to view and download new AIS , CLICK HERE

INCOME TAX DEPARTMENT EXTENDS TIME LIMIT FOR SUBMISSION OF
IT RETURNS FOR FY 20--21 ( AY 21-22 )

Dated 09.09.2021 : On consideration of difficulties reported by the taxpayers in filing of Income Tax Returns(ITRs) & Audit reports for AY 2021-22 under the IT Act, 1961, CBDT further extends the due dates for filing of ITRs & Audit reports for AY 21-22. Circular No.17/2021 dated 09.09.2021 issued.

1. The due date of furnishing of Return of Income for the Assessment Year 2021-22,  which was 31st July, 2021 under sub-section (1) of section 139 of the Act, as September, 2021 vide Circular No.9/2021 dated 20.05.2021, is further extended to 31st December, 2021;

2. The due date of furnishing of Report of Audit under any provision of the Act for the  Previous Year 2020-21, which is 30th September, 2021, as extended to 31st  October, 2021 vide Circular No.9/2021 dated 20.05.2021, is further  extended to 15th January, 2022;

3. The due date of furnishing Report from an Accountant by persons entering into  international transaction or specified domestic transaction under section 92E of the Act for the Previous Year 2020-21, which is 31st October, 2021, as extended to 30th November, 2021 vide Circular No.9/2021 dated 20.05.2021, is further extended to 31st January, 2022;

4. The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 31st October, 2021 under sub-section (1) of section 139 of the Act, as extended to 30th November, 2021 vide Circular No.9/2021 dated 20.05.2021, is further extended to 15th February, 2022;

5. The due date of furnishing of Return of Income for the Assessment Year 2021-22,  which is 30th November, 2021 under sub-section (1) of section 139 of the Act, as extended to 31st December, 2021 vide Circular No.9/2021 dated 20.05.2021, is  further extended to 28th February, 2022;

6. The due date of furnishing of belated/revised Return of Income for the Assessment  Year 2021-22, which is 31st December, 2021 under sub-section (4)/sub-section (5) of section 139 of the Act, as extended to 31st January, 2022, vide Circular No.9/2021 dated 20.05.2021, is further extended to 31st March, 2022;

It is also clarified by CBDY that the extension of the dates as referred to in clauses (9), (12)  and (13) of Circular No.9/2021 dated 20.05.2021 and in clauses (1), (4) and (5) above shall not apply to Explanation 1 to section 234A of the Act, in cases where the amount of
tax on the total income as reduced by the amount as specified in clauses (i) to (vi) of subsection (1) of that section exceeds rupees one lakh. Further, in case of an individual  resident in India referred to in sub-section (2) of section 207 of the Act, the tax paid by him
under section 140A of the Act within the due date (without extension under Circular  No.9/2021 dated 20.05.2021 and as above) provided in that Act, shall be deemed to be  the advance tax.

To read the circular 17/ 2021 of CBDT , CLICK HERE

EXEMPTION OF IT RETURNS FILING FOR 75YEARS AND ABOVE AGED : CONDITIONS APPLY
Government issues Notification : Declaration form notified .

Dated 06.09.2021 : During the budget speech delivered on 01st , February 2021 , FM Ms Nirmala Sitharaman had promised reduction of compliance burden to the senior citizens who are above 75 years of age .

She had told " I begin my direct tax proposals by offering my pranaam to our senior  citizens. Many of them, despite having foregone several basic necessities of  their own, have strived to build our nation.   Now in the 75th year of Independence of our country, when we  continue our endeavour with renewed vigour, we shall reduce compliance  burden on our senior citizens who are 75 years of age and above. For senior  citizens who only have pension and interest income, I propose exemption . from filing their income tax returns. The paying bank will deduct the  necessary tax on their income "

In fulfillment of the above desire of FM to reduce compliance burden , Government had introduced section 194 P of the IT Act which allows non-submission of IT Returns for persons above 75 years with the following procedures , terms and conditions :

1. Person should have completed 75 years of age before 31.03.2022
2. Senior Citizens should be drawing pension in a " Specified Bank " to be notified by the Government in due course .
3. They should have no other income except interest from that specified bank only where they are drawing pension .
4. Senior Citizen should submit a declaration with regard to the same to the specified bank along with details of eligible rebates . ( Declaration Form will be announced in due course )
5. Specified bank should compute the tax liability of the person and remit to IT Department .

Now the Government has issued notification specifying the declaration required to be furnished by the specified senior citizen to the specified bank which shall be in Form no. 12BBA to be furnished in paper form duly verified.

“Form no. 12BBA
(see rule 26D)
Declaration to be furnished by Specified Senior Citizen under sub-clause (iii) of clause (b) of Explanation to section 194P

(1) Name and address of the person :
(2) PAN or Aadhaar :
(3) Previous Year :
(4) Date of Birth :
(5) Name of the Specified Bank :
(6) Name of Employer from which pension is drawn :
(7) Pension Payment Order (PPO) Number :
Verification
I, .............. son/daughter of ...................... do hereby certify that the information given above is complete and correct
and that I do not have any income other than the income of the nature of pension and/or interest which is received or
receivable only in the account(s) of the specified bank stated above
Date ................
……………
Place ..............
(Signature of person)
Full Name: ...................... .”;

The bank responsible for deduction of tax under section 194P has to furnish evidence produced by the specified senior citizen for claiming deductions to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) or to any other person authorised by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), as and when required.

The exemption Rule will come in to effect for the Financial year 2021-22 .   It is apparent that senior citizens who have multiple bank accounts or earning interest from post office deposits will not be eligible under the scheme and hence few persons may be able to utilise the provision .

. One may read the Finance bill by CLICKING HERE   ( Section 194 P is in 47th paragraph of direct tax amendments in the Finance Bill )
and CBDT Notification dated 02.09.2021 by CLICKING HERE

To go through Budget details on 01.02.2021 ,  CLICK HERE

EXTENSION OF TIME LIMITS FOR SUBMISSION OF VARIOUS FORMS   :

Dated 30.08.2021 :  As glitches in the new IT portal is yet to be fixed and problems faced by the tax payers continue for E-filing various forms to Income tax Department , income tax department has extended  the due dates  for electronic filing of such Forms as under :

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

(2) 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 fling falls on or before  28h February,2022 may be filed on or before 31March, 2022;

(3)  The Equalization Levy Statement in Fom No.1 for the Financial Year 2020- (3) 21, which was required to be filed on or before 30 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;

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

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

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

(7) 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:

(8) Intimation to be made by Sovereign Wealth Fund in respect of investments  made by it in India in Form lI 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 30"h September, 2021 vide Circular No. 15 of 2021 dated  03.08.2021, may be made on or before 30th November, 2021;

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

(10)  Intimation to be made by a Pension Fund in respect of each investment (10) made by it in India in Form No. 108BB for the quarter ending on 30th June,2021, required to be made on or before 31 July,2021 under Rule 2DB of the Rules, as extended to 30h September, 2021 vide Circular No. 15 of 2021 dated 03.08.2021, may  be made on or before 30h November, 20021:

(11) Intimation to be made by a Pension Fund in respect of each investment (11) made by it in India in Form No. 10BBB for the quarter ending on 30 September, 2021. required to be made on or before 31 October,2021 under Rule  2DB of the Rules, may be made on or before 31* December, 2021;

(12) Intimation by a constituent entity, resident in India, of an international (12) 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 30h November,2021 under Rule 10DB of the Rules, may be made on or before  31s December,2021;

(13) 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 subsection (4) of section 286 of the Act, in Form No. 3CEAD, required to be furnished on or before 30h November,2021 under Rule 10DB of the Rules, may be furnished on  or before 31st December,2021;

(14)  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.

To read the original press release of CBDT dated 29.08.2021 , CLICK HERE

MAKE E-FILING PORTAL GLITCHFREE BEFORE 15TH, SEPT : FM TO INFOSYS HEAD

Dated 24.08.2021 : Ministry of Finance had summoned Mr Salil Parekh,MD&CEO of Infosys , on 23/08/2021 to explain to FM as to why glitches in the portal have not been resolved so far . As per the summon , Infosys MD met the Finance Minister Ms Nirmala Sitharaman yesterday .

In the meeting , FM expressed her dismay in the matter and asked them to make the new e-filing portal errorfree and smooth to operate for the tax payers before 15th September 2021 . In turn , MD of Infosys advised that they are doing their best to resolve the matter and COO of Infosys is personally supervising the project and more than 750 personnel have been put it in to job .

With this developments , it appears that another 20-25 days will be at least be required to set right the portal and tax payers have to bear it till then . The present deadline for submitting the IT Returns is 30.09.2021 and it's all likely that deadline will have to be extended .

To READ PRESS RELEASE DATED 23.08.2021 of IT DEPARTMENT , CLICK HERE

FM SUMMONS INFOSYS HEAD IN THE MATTER OF NEW E-FILING PORTAL

Dated 22.08.2021 : As the glitches in the new e-portal is continuing even after 75 days of its launch , Ministry of Finance has summoned Sh Salil Parekh,MD&CEO of Infosys , on 23/08/2021 to explain to Ms Nirmala Sitharaman FM as to why glitches in the portal have not been resolved so far .

The portal was not working since yesterday and we observe that portal working has resumed now . But glitches are continuing .

Already people are asking the ministry to extend the deadline for filing the IT Returns which is presently allowed up to 30.09.2021

  DEDICATED EMAIL ID FOR  FACELESS PENALTY SCHEME 2021 :

07.08.2021 :  The Income Tax Department launched Faceless Penalty Scheme 2021 in January 2021 . Under Faceless Penalty scheme , CBDT would establish Faceless penalty centres including   National Faceless Penalty Centre , Regional Faceless Penalty Centres ,  penalty units and penalty review units .

If any penalty is to be levied to any assessee , the penalty amount will be assessed by Faceless Assessment first and then referred to Faceless Penalty Centers . Then Faceless penalty centres will start penalty proceedings . Penalty will be checked and reviewed by these units and notice will be issued only after a review of the penalty has been done . The communications will only through digital mode like e-mail .

If assessee wants to appeal against any penalty order , one can go through Faceless appeal scheme . Under the Faceless Appeals, in income tax appeals, everything from e-allocation of appeal, e-communication of notice/ questionnaire, e-verification/e-enquiry to e-hearing and finally e-communication of the appellate order, the entire process of appeals is online, dispensing with the need for your visit to the Department.

The Income Tax Department has now created dedicated e-mail ids for registering grievances in respect of pending cases under the Faceless Scheme as below :

Grievances can be furnished as under:

1. For Faceless assessments: [email protected];
2. For Faceless penalty: [email protected];
For Faceless Appeals: [email protected].

To Read the notification  dated 12.01.2021 , CLICK HERE

RETROSPECTIVE TAX SCRAPPED : LOKSABHA PASSES AMENDMENT BILL

Dated 07.08.2021 : Yesterday Loksabha passed a bill annulling the Retrospective Tax Act enacted in 2012 . The annulment benefits for those whom government had demanaded retrospective taxes earlier .

The Retroactive Tax Act is an amendment to the Income Tax Act of 1961 was introduced in May 2012, allowing the government to require businesses to pay taxes on mergers and acquisitions that occurred prior to that date . The primary purpose of the act was to tax foreign entities like Cairn Energy Plc , Vodafone Group of UK for their acquisitions in India . However both the firms have won International arbitrations against the retrospective tax .

After the 2012 act was introduced , Central government had collected around RS 8,100 ax for the earlier period while Vodafone was slapped with tax demand of Rs 14,100 crores along with interest which amounts to around Rs 22,000 crores now . The tax demand was against Vodafone International Holdings for not deducting withholding tax from Hutchinon while take over . Now government has assured a refund of Rs 8,100 crores collected earlier without any additional interest . FM Nirmala Sitharaman alo assured that such law would not be brought again .

EXTENSION OF TIME LIMITS FOR SUBMISSION OF VARIOUS FORMS :

Dated 04.08.2021 : As glitches in the new IT portal is yet to be fixed and problems faced by the tax payers continue for E-filing various forms to Income tax Department , income tax department has extended the due dates for electronic filing of such Forms as under:

(i) 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 July ,2021 vide Circular No.12 of 2021 dated 25.06.2021 , may be filed on or before 31st August, 2021;

(ii) 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 July, 2021 vide Circular No.12 of 2021 dated 25.06.2021 , may be filed on or before 31st August, 2021;

(iii) The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 640 for the Previous Year 2020-21 , required to be furnished on or before 15th June, 2021 under Rule 12CB of the Rules, as extended to 15th Ju1Y,2021 vide Circular No.12 of2021 dated 25.06.2021 , may be furnished on or before 15th September,2021 ;

(iv) The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64C for the Previous Year 2020-21 , required to be furnished on or before 30th June, 2021 under Rule 12CB of the Rules, as extended to 31st July, 2021 vide Circular No. 12 of 2021 dated 25.06.2021 , may be furnished on or before 30th September, 2021 .

(i) 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 furnished on or before 31st July ,2021 under Rule 2DB of the Rules, may be furnished on or before 30th September, 2021 ;

(ii) 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 furnished on or before 31st July,2021 as per Circular No.15 of 2020 dated 22.07.2020, may be furnished on or before 30th September, 2021.

To read Income Tax Department's circular , CLICK HERE

PERIOD ALLOWED TO SUBMIT FORM 15CA & 15CB MANUALLY FURTHER EXTENDED :

Dated 21 .07. 2021 : As glitches in the new IT portal is yet to be fixed and problems faced by the tax payers in filing of forms 15CA & 15CB in new e-filing portal is yet to be sorted out , income tax department has extended manual submission period up to 15th, August 2021 . Now Authorized Dealers ( AD ) can accept the forms manually up to 15th , August 2021 .

To read the press release dated 20.07.2021 of CBDT , CLICK HERE

PERIOD ALLOWED TO SUBMIT FORM 15CA & 15CB MANUALLY EXTENDED :

Dated 08 .07. 2021 : As problems faced by the tax payers in filing of forms 15CA & 15CB in new e-filing portal is yet to be sorted out , income tax department has extended manual submission period up to 15th, July 2021 . Now Authorized Dealers ( AD ) can accept the forms manually up to 15th , July 2021 .

What are Forms 15CA & 15CB ?

Form 15CA is a declaration to be submitted by foreign exchange remitter . 15CB is the Tax Determination Certificate where the CA verifies the remittance . The forms are to be submitted on the income tax e-filing portal .

Form 15CA is a declaration by any person intending to make remittance to non-resident or to foreign company (irrespective of whether remittance is subject to tax) by remitter when income accrues in India (Section 5 of Income Tax Act).
Form 15CB is a certificate required to be filed by the Chartered Accountant when remittance is made to non-resident or foreign company is taxable and the payment exceeds Rs. 5,00,000/- and when order/ certificate has not been received from Assessing Officer (AO).

To read the press release dated 05.07.2021 of CBDT , CLICK HERE

INCOME TAX DEPARTMENT ANNOUNCES INCOME TAX EXEMPTION AND EXTENSION OF VARIOUS TIMELINES :

Dated 25.06.2021 : Due to prevailing pandemic situation in the country Income tax extended various timelines today as follows :
Extension of Timelines
In view of the impact of the Covid-19 pandemic, taxpayers are facing inconvenience in meeting certain tax compliances and also in filing response to various notices. In order to ease compliances to be made by taxpayers during this difficult time, reliefs are being provided through Notifications nos. 74/2021 & 75/2021 dated 25th June, 2021 Circular no. 12/2021 dated 25th June, 2021. These reliefs are:

Objections to Dispute Resolution Panel (DRP) and Assessing Officer under section 144C of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for which the last date of filing under that section is 1st June, 2021 or thereafter, may be filed within the time provided in that section or by 31st August, 2021, whichever is later.
The Statement of Deduction of Tax for the last quarter of the Financial Year 2020-21, required to be furnished on or before 31st May, 2021 under Rule 31A of the Income-tax Rules,1962 (hereinafter referred to as “the Rules”), as extended to 30th June, 2021 vide Circular No.9 of 2021, may be furnished on or before 15th July, 2021.
The Certificate of Tax Deducted at Source in Form No.16, required to be furnished to the employee by 15th June, 2021 under Rule 31 of the Rules, as extended to 15th July, 2021 vide Circular No.9 of 2021, may be furnished on or before 31st July, 2021.
The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64D for the Previous Year 2020-21, required to be furnished on or before 15th June, 2021 under Rule 12CB of the Rules, as extended to 30th June, 2021 vide Circular No.9 of 2021, may be furnished on or before 15th July, 2021.

The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64C for the Previous Year 2020-21, required to be furnished on or before 30th June, 2021 under Rule 12CB of the Rules, as extended to 15th July, 2021 vide Circular No.9 of 2021, may be furnished on or before 31st July, 2021.
The application under Section 10(23C), 12AB, 35(1)(ii)/(iia)/(iii) and 80G of the Act in Form No. 10A/ Form No.10AB, for registration/ provisional registration/ intimation/ approval/ provisional approval of Trusts/ Institutions/ Research Associations etc., required to be made on or before 30th June, 2021, may be made on or before 31st August, 2021.
The compliances to be made by the taxpayers such as investment, deposit, payment, acquisition, purchase, construction or such other action, by whatever name called, for the purpose of claiming any exemption under the provisions contained in Section 54 to 54GB of the Act, for which the last date of such compliance falls between 1st April, 2021 to 29th September, 2021 (both days inclusive), may be completed on or before 30th September, 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 37 BB of the Rules, may be furnished on or before 31st July, 2021.
The Equalization Levy Statement in Form No. 1 for the Financial Year 2020-21, which is required to be filed on or before 30th June, 2021, may be furnished on or before 31st July, 2021.
The Annual Statement required to be furnished under sub-section (5) of section 9A of the Act by the eligible investment fund in Form No. 3CEK for the Financial Year 2020-21, which is required to be filed on or before 29th June, 2021, may be furnished on or before 31st July, 2021.
Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending 30th June, 2021, which is required to be uploaded on or before 15th July, 2021, may be uploaded by 31st August,2021.
Exercising of option to withdraw pending application (filed before the erstwhile Income Tax Settlement Commission) under sub-section (1) of Section 245M of the Act in Form No. 34BB, which is required to be exercised on or before 27th June, 2021, may be exercised on or before 31st July, 2021.
Last date of linkage of Aadhaar with PAN under section 139AA of the Act, which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.
Last date of payment of amount under Vivad se Vishwas(without additional amount) which was earlier extended to 30th June, 2021 is further extended to 31st August, 2021.
Last date of payment of amount under Vivad se Vishwas (with additional amount) has been notified as 31st October, 2021.
Time Limit for passing assessment order which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.
Time Limit for passing penalty order which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.
Time Limit for processing Equalisation Levy returns which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.
Last date of payment of amount under Vivad se Vishwas (with additional amount) has been notified as 31st October, 2021.
Time Limit for passing assessment order which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.
Time Limit for passing penalty order which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.
Time Limit for processing Equalisation Levy returns which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.

EXTEMPTION OF INCOME TAX ON EXGRATIA RECEIVED ON ACCOUNT OF COVID :

Many taxpayers have received financial help from their employers and well-wishers for meeting their expenses incurred for treatment of Covid-19. In order to ensure that no income tax liability arises on this account, it has been decided to provide income-tax exemption to the amount received by a taxpayer for medical treatment from employer or from any person for treatment of Covid-19 during FY 2019-20 and subsequent years.
Unfortunately, certain taxpayers have lost their life due to Covid-19. Employers and well-wishers of such taxpayers had extended financial assistance to their family members so that they could cope with the difficulties arisen due to the sudden loss of the earning member of their family. In order to provide relief to the family members of such taxpayer, it has been decided to provide income-tax exemption to ex-gratia payment received by family members of a person from the employer of such person or from other person on the death of the person on account of Covid-19 during FY 2019-20 and subsequent years. The exemption shall be allowed without any limit for the amount received from the employer and the exemption shall be limited to Rs. 10 lakh in aggregate for the amount received from any other persons.

Necessary legislative amendments for the above decisions shall be proposed in due course of time.
To read the announcement of Finance Ministry , CLICK HERE

GLITCHES WILL BE REMOVED IN A WEEK : INFOSYS

Dated 23.06.2021 : In a high level meeting held by Senior Officials of Income tax department yesterday , the vendor of new e-filing website , M/s Infosys assured that they are working on the numerous glitches brought to their notice in the working of the new portal . They told that some of the issues have been resolved and the remaining glitches will be rectified in a week .

The meeting was chaired by Union Finance Minister Ms Nirmala Sitharaman . The meeting was attended by her deputy Mr Anurag Thakur along with various senior officials of the ministry and some tax professionals .

The Finance Minister exhorted Infosys (service provider) to work on the tax portal to make it more humane and user-friendly and expressed her deep concern on the various problems being faced by the stakeholders in the new portal which was expected to provide a seamless experience to taxpayers.

The team from Infosys, which was led by the CEO and COO of Infosys, took note of the issues highlighted in the meeting . They also noted the observations and suggestions received from various users and stakeholders through email and assured that their teams were working on these issues and gave the expected timelines within which the issues such as e-proceedings, Form 15CA/15CB, TDS statements, DSC, viewing of past ITRs etc. are expected to be resolved in about a week .

As the new e-portal is riddled with numerous issues , tax payers and chartered accountants are waiting for an early solution .

To read Press release by MOF on the issue , CLICK HERE

NEW FUNCTIONALITY TO CHECK FOR SEC 206AB & 206 CCA TO HELP TAX DEDUCTORS :

Dated 22.06.2021 : As per the new income tax sections 206AB & 206CCA introduced for FY 2021-22 , banks and other entities have to charge higher rates of TDS under sec 206AB or TCS under sec 206CCA   in cases of certain non-filers (specified persons) with respect to tax deductions   and tax collections. Higher rate is twice the prescribed rate or 5%, whichever is higher . The rule comes to effect from 01.07.2021 .

Specified person means a  person who satisfies both the following conditions: -

(i) He has not filed the returns of income for both of the two assessment years  relevant to the two previous years immediately before the previous year in which tax is required to be deducted Icollected. Two previous years to be  counted are required to be those whose return filing date under sub-section (1)   of section 139 has expired.
(ii) Aggregate of tax deducted at source and tax collected at source is rupees fifty  thousand or more in each of these two previous years.

To help the tax deductors and tax colectors in finding such specified persons , the Central Board of Direct Taxes ( CBDT ) is issuing a new functionality "Compliance Check for Sections 206AB & 206CCA". This functionality is made available through reporting portal of the Income-tax Department. The tax deductor or the collector can feed the single PAN or multiple PANs of the their customers / vendors etc and find from the functionality if such person is a specified person. For PAN Search, response will be visible on the screen which can be downloaded in the PDF format . For Bulk Search, response would be in the Conn of downloadable file which can be kept for record .

The functionality will be made available through New e-filing portal .

To read the notification in this regard , CLICK HERE

GLITCHES IN THE NEW E FILING PORTAL : MINISTRY OFFICIALS TO MEET THE VENDOR

Dated 16.06.2021 : Much awaited new e- filing portal of income tax department , opened on 7th of this month , has many glitches . Tax payers are unable to login to the site and even when they log in , they are not able to proceed further . Complaints are pouring in from various quarters .

Reacting to the complaints now , Senior Finance Ministry officials will hold interactive meeting with the vendor of the software for the new portal M/S Infosys on 22nd June, 2021 between 1 am to 1.00 pm on issues in the new IT e-Filing portal. Finance Ministry has also included other Stakeholders including ICAI members, auditors, consultants &taxpayers to be part of the interaction.

Ministry has also invited written complaints with regard to the problems faced by the tax payers and other stakeholders like chartered Accountants . Representatives of Infosys will be present to clarify issues , resolve problems and receive the inputs regarding the glitches faced .

For the press release of CBDT in this regard , CLICK HERE

FORM 15CA & 15CB CAN BE FILED MANUALLY :

Dated 15.06.2021 : In view of the problems being faced by the tax payers in filing of forms 15CA & 15CB in new e-filing portal , income tax department has allowed submission of the forms manually up to 30th, June 2021 . Now Authorized Dealers ( AD ) can accept the forms manually .

What are Forms 15CA & 15CB ?

Form 15CA is a declaration to be submitted by foreign exchange remitter . 15CB is the Tax Determination Certificate where the CA verifies the remittance . The forms are to be submitted on the income tax e-filing portal .

Form 15CA is a declaration by any person intending to make remittance to non-resident or to foreign company (irrespective of whether remittance is subject to tax) by remitter when income accrues in India (Section 5 of Income Tax Act).
Form 15CB is a certificate required to be filed by the Chartered Accountant when remittance is made to non-resident or foreign company is taxable and the payment exceeds Rs. 5,00,000/- and when order/ certificate has not been received from Assessing Officer (AO).

To read the press release dated 14.06.201 of CBDT , CLICK HERE

FM'S REACTION ON GLITCHES IN THE NEW E FILING PORTAL :

Dated 08.06.2021 : Much awaited new e- filing portal of income tax department , opened yesterday night , is now cause of complaints from the tax payers . Tax payers are unable to login to the site and even when they log in , they are not able to proceed further . Complaints are pouring in to the FM 's twitter account .

Reacting to the complaints , Finance Minister Ms Nirmala Sitharaman has reacted in her twitter account by referring to Infosys and Nandan Nilkeni and hoping they would not let down the tax payers . Now it is understood that the vendor of the software is Infosys and they have to rectify all the errors and glitches in the software .

Let us hope that it's the initial glitches and Infosys will do their best to resolve the issues to make the software user friendly .

NEW E-FILING PORTAL OF INCOME TAX DEPARTMENT IS NOW OPEN

Dated 07.06.2021 : Today late in the evening , new e-filing website of income tax department e-filing 2.0 was thrown open for public .
You may now visit the website https://www.incometax.gov.in/iec/foportal .

The following services will be available on the portal among other informations :

1. Filing of Income Tax returns
2. Verify your Income tax returns
3. Link Aadhaar to PAN
4. e-pay your income tax
5. Track status of Income tax returns filed
6. Verify your PAN details
7. Know about Tax deductors - TAN Numbers
8. Get Instant E-PAN

You may login to the new portal using your earlier password . All the services may not be available now and it may take some more time to operationalize all the features . The new tax payment system will be launched only on June 18th,2021 in the portal .
Completely ready to submit pre-filled forms with salary income, interest, dividend and capital gains will be available only after 30th, June 2021 as TDS and SFT statements are uploaded only by then .
Income tax payers will be able to effectively submit their income tax returns for FY 2020-21 ( AY 2021-22 ) duly matched with form 26As only on or after 1st , July 2021 . However tax payers have time up to 30th , September 2021 to file their IT Returns .

We will come out with further details in due course .

Salient Features of New Income Tax e filing portal

FEATURES OF NEW E-FILING PORTAL OF INCOME TAX DEPARTMENT   :

Dated 06.06.2021 : The Income Tax Department is going to launch its new e-filing portal www.incometax.gov.in tonight at 12.00. The new e-filing portal (www.incometax.gov.in) is aimed at providing taxpayer convenience and a modern, seamless experience to taxpayer .

As per the latest press release of the department , following are the some of features of the new website :

1.  Portal is integrated with immediate processing of Income Tax Returns (ITRs) and refunds will be issued to taxpayers quickly .

2 Interactions and uploads or pending actions will be displayed on a single dashboard for follow-up action by taxpayer;

3. Free of cost ITR preparation software available with interactive questions to help taxpayers for ITRs 1, 4 (online and offline) and ITR 2 (offline) to begin with . Facility for preparation of ITRs 3, 5, 6, 7 will be made available later on .

4. Taxpayers will be able to proactively update their profile to provide certain details of income including salary, house property, business/profession which will be used in pre-filling their ITR.

5. Completely ready to submit pre-filled forms with salary income, interest, dividend and capital gains will be available only after 30th, June 2021 as TDS and SFT statements are uploaded only by then .

6. Portal will carry links to New call center for taxpayer assistance .

7. Portal will carry detailed FAQs, User Manuals, Videos and chatbot/live agent also provided .

8. Functionalities for filing Income Tax Forms, Add tax professionals, Submit responses to Notices in Faceless Scrutiny or Appeals would be available.

9. The  new tax payment system will be launched only on June 18th,2021 in the portal after the advance tax instalment date to avoid any taxpayer inconvenience.

10. New online tax payment system on new portal will be enabled subsequently with multiple new payment options using net banking, UPI, Credit Card and RTGS/NEFT from any account of taxpayer in any bank, for easy payment of taxes .

11.   The  mobile app will be released later on .

Income tax department has requested all tax payers / stake holders for patience as Familiarization with the new system
may take some time, and while some facilities may be added only later on .

In nutshell , Income tax payers will be able to effectively submit their income tax returns for FY 2020-21 ( AY 2021-22 ) duly matched with form 26As only on or after 1st , July 2021 . However tax payers have time up to 30th , September 2021 to file their IT Returns .

To read the press release of IT Department dated 05.06.2021 , CLICK HERE

NEW E-FILING PORTAL OF INCOME TAX DEPARTMENT TO BE LAUNCHED :

Dated 21.05.2021 : The Income Tax Department is going to launch its new e-filing portal www.incometax.gov.in on 7thJune, 2021. The new e-filing portal (www.incometax.gov.in) is aimed at providing taxpayer convenience and a modern, seamless experience to taxpayer .

As per press release of Finance Ministry .

New taxpayer friendly portal integrated with immediate processing of Income Tax Returns(ITRs) to issue quick refunds to taxpayers;
All interactions and uploads or pending actions will be displayed on a single dashboard for follow-up action by taxpayer;
Free of cost ITR preparation software available online and offline with interactive questions to help taxpayers fill ITR even without any tax knowledge, with pre-filling, for minimizing data entry effort;
New call center for taxpayer assistance for immediate answers to taxpayer queries with FAQs, Tutorials, Videos and chatbot/live agent;
All key portal functions on desktop will be available on Mobile App which will be enabled subsequently for full anytime access on mobile network;
New online tax payment system on new portal will be enabled subsequently with multiple new payment options using netbanking, UPI, CreditCard and RTGS/NEFT from any account of taxpayer in any bank, for easy payment of taxes.

In preparation for this launch and for migration activities, the existing portal of the Department at www.incometaxindiaefiling.gov.in would not be available to taxpayers as well as other external stakeholders for a period of 6 days i.e. from1st June, 2021 to 6th June, 2021.

In order to avoid any inconvenience to taxpayers, the Department will not fix any compliance dates during this period. Further, directions have been issued to fix hearing of cases or compliances only from 10thJune,2021 onwards, to give taxpayers time to respond on the new system. If, any hearing or compliance which requires submissions online has been scheduled during this period, the same will be preponed or adjourned and the work items would be rescheduled after this period.
The Department has also intimated external entities including Banks, MCA, GSTN, DPIIT, CBIC, GeM, DGFT who avail services of PAN verification etc. about the non-availability of the services and to request them to make arrangements to ensure that their customers/stakeholders are apprised, so that any relevant activity can be completed prior to or after the blackout period.
Taxpayers are encouraged to complete all their urgent tasks involving any submission, upload or downloads before 1stJune, 2021to avoid any difficulty during the blackout period.

IT DEPARTMENT EXTENDS DEADLINE FOR SUBMISSION OF IT RETURNS FOR AY 21-22 ALONG WITH VARIOUS OTHER RETURNS

Dated 20.05.2021 : In view of severe pandemic situation in the country , today Income tax department extended the due date for submission of income tax returns for FY 2020 -21 ( AY 2021-22 ) to 30th September 2021 from existing 31st , July 2021 . It also has extended various other deadlines as follows :

The Statement of Financial Transactions(SFT) for the Financial Year 2020-21, required to be furnished on or before 31st May, 2021 under Rule 114E of the Income-tax Rules, 1962 (hereinafter referred to as “the Rules”) and various notifications issued thereunder, may be furnished on or before 30th June, 2021;

2 . The Statement of Reportable Account for the calendar year 2020, required to be furnished on or before 31st May, 2021 under Rule 114G of the Rules, may be furnished on or before 30th June, 2021;

3. The Statement of Deduction of Tax for the last quarter of the Financial Year 2020-21, required to be furnished on or before 31st May, 2021 under Rule 31A of the Rules, may be furnished on or before 30th June, 2021;

4. The Certificate of Tax Deducted at Source in Form No 16, required to be furnished to the employee by 15th June, 2021 under Rule 31 of the Rules, may be furnished on or before 15th July, 2021;

5. The TDS/TCS Book Adjustment Statement in Form No 24Gfor the month of May 2021, required to be furnished on or before 15th June, 2021 under Rule 30 and Rule 37CA of the Rules, may be furnished on or before 30th June, 2021;

6. The Statement of Deduction of Tax from contributions paid by the trustees of an approved superannuation fund for the Financial Year 2020-21, required to be sent on or before 31st May, 2021 under Rule 33 of the Rules, may be sent on or before 30th June, 2021;

7. The Statement of Income paid or credited by an investment fund to its unit holder in Form No 64D for the Previous Year 2020-21, required to be furnished on or before 15th June, 2021 under Rule 12CB of the Rules, may be furnished on or before 30th June, 2021;

8. The Statement of Income paid or credited by an investment fund to its unit holder in Form No 64C for the Previous Year 2020-21, required to be furnished on or before 30th June, 2021 under Rule 12CB of the Rules, may be furnished on or before 15th July, 2021;

9. The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 31st July, 2021 under sub-section (1) of section 139 of the Act, is extended to 30th September, 2021;

10. The due date of furnishing of Report of Audit under any provision of the Act for the Previous Year 2020-21, which is 30th September, 2021, is extended to 31st October, 2021;

11. The due date of furnishing report from an Accountant by persons entering into international transaction or specified domestic transaction under section 92E of the Act for the Previous Year 2020-21,which is 31st October, 2021, is extended to 30th November, 2021;

12. The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 31st October, 2021 under sub-section (1) of section 139 of the Act, is extended to 30th November, 2021;

13. The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 30th November, 2021 under sub-section (1) of section 139 of the Act, is extended to 31st December, 2021;

14 . The due date of furnishing of belated/revised Return of Income for the Assessment Year 2021-22, which is 31st December, 2021 under sub-section (4)/sub-section (5) of section 139 of the Act, is extended to 31st January, 2022.

To go through the press release on this regard , CLICK HERE

HOSPITALS CAN RECEIVE CASH MORE THAN RS 2 LAKHS A DAY FROM COVID PATIENTS :

Dated 08.05.2021 : Income tax department has relaxed provisions of section 269ST of Income-tax Act,1961 and allowed
Hospitals/Medical facilities etc providing Covid treatment to patients to receive cash payments of Rs. 2 lakh or more . Relaxation is granted for the period 01.04.2021 to 31.05.2021 only and after obtaining PAN or AADHAAR of patient & the payer. If payer is other than the patient , hospitals have to obtain the details of relationship between them

The relaxation applies to Hospitals , Nursing Homes , Covid Care centres or other similar medical facilities extending covid treatment .

For the gazette notification dated 07.05.2021 , CLICK HERE

NOW PREFILLED IT RETURNS WILL ALSO CONTAIN INFO ON CAPITAL GAINS FROM SHARE , MUTUAL FUND TRANSACTIONS :

Dated 04.05.2021 : Income Tax Department has now notified the format , procedure and guidelines ( for the depositories & Mutual Funds ) for submission of Statement of Financial Transactions (SFT) for the purpose of informing details of security transactions like shares , Mutual Funds ETC to them . The information is also to be provided to their customers separately by e-mail or portal . The information to the income tax department is to be provided under Section 285BA of the Income Tax Act, 1961 and Rule 114E requires specified reporting persons to furnish statement of financial transaction (SFT) . The information will contain both short term and long term profit / loss made on your buy / sell transactions .

The information will reflect now in income tax payer's 26as as well as in prefilled income tax returns provided to the tax payers by the income tax department which will enable the payer to reconcile the returns with 26as before filing the same .

The last date for submission of the above statement by the depositories is 31st, May for the previous financial year 2020-21 . Thereafter, the statement of financial transactions relating to the quarter ending 30th June, 31st September, 31st December and 31st March shall e furnished on or before 25th of July, October, January and April respectively.

Hence tax payers may have to wait for reconciling their returns with 26as and prefilled IT returns provided by the department .

To go through the notification for share transactions , CLICK HERE

To go through the notification for Mutual Funds transactions , CLICK HERE

CBDT EXTENDS VARIOUS DUE DATES :

Dated 01.05.2021 : As per notification dated 30.04.2021 , Income tax department has relaxed / extended the due dates in following cases including belated submission of IT Returns for AY 2020-21 :

a) Appeal to Commissioner (Appeals) under Chapter XX of the Income-tax Act, 1961 for which the last date of filing under that Section is 1" April 2021 or thereafter, may be filed within the time provided under that Section or by 31" May 2021 , whichever is later;

b) Objections to Dispute Resolution Panel (DRP) under Section 144C of the Income-tax Act, 1961, for which the last date of filing under that Section is 1" April 2021 or thereafter, may be filed within the time provided under that Section or by 31" May 2021 , whichever is later;

c) Income-tax return in response to notice under Section 148 of the Income-tax Act, 1961, for which the last date of filing of return of income under the said notice is 1" April 2021 or thereafter, may be filed within the time allowed under that notice or by 31" May 2021, whichever is later;

d) Filing of belated return under sub-section (4) and revised return under sub-section (5) of Section 139 of the Income-tax Act,1961 for Assessment Year 2020-21, which was required to be filed on or before 31 " March 2021 , rnay be filed on or before 31" May 2021 ;

e) Payment of tax deducted under Section 194-IA, Section 194-IB and Section 194M of the Income-tax Act, 1961 and filing of challan-cum-statement for such tax deducted, which are required to be paid and furnished by 30'h April 2021 under Rule 30 of the Income-tax Rules, 1962, may be paid and furnished on or before 31" May 2021 ;

f) Statement in Form No. 61, containing particulars of declarations received in Form No.60, which is due to be furnished on or before 30'h April 2021 , may be furnished on or before 31" May 2021.

NOW PREFILLED IT RETURNS WILL CONTAIN INFO ON INTEREST AND DIVIDEND :

Dated 23.04.2021 : Income Tax Department has now notified the format , procedure and guidelines ( for the banks , post offices and other NBFC institutions who pay interest to their customers ) and Dividend Income ( for a company distributing dividends ) for submission of Statement of Financial Transactions (SFT) . The information is also to be provided to their customers separately by e-mail or portal . The information to the income tax department is to be provided under Section 285BA of the Income Tax Act, 1961 and Rule 114E requires specified reporting persons to furnish statement of financial transaction (SFT)

The information on interest is to be reported for all account/deposit holders where cumulative interest exceeds Rs 5,000/ per person in the financial year. However Interest which is exempt from tax under the Incometax Act, 1961 such as interest on Public Provident Fund (PPF) Account, Foreign Currency Nonresident (FCNR) Account, Sukanya Samriddhi Account, Resident Foreign Currency Account etc. need not be reported.

The information will reflect now in income tax payer's 26as as well as in prefilled income tax returns provided to the tax payers by the income tax department which will enable the payer to reconcile the returns with 26as before filing the same .

The last date for submission of the above statement is 31st, May for the previous financial year . Hence tax payers may have to wait for reconciling their returns with 26as and prefilled IT returns provided by the department .

To go through the notification on Interest , CLICK HERE and for Dividends , CLICK HERE

SUBMIT FORM 15G/ 15H TO YOUR BANK NOW , IF YOU ARE ELIGIBLE

Dated 14.04 .2021 : If you are eligible to submit Form 15 G / 15H , submit now to avoid Tax being deducted from interest payment on your bank / post office deposits .

WHAT IS FORM 15G / 15H ?

FORM 15G is the declaration that a Bank Deposit holder can submit to the banker if he/ she want exemption from Tax Deduction at Source ( TDS ) on the interest paid on the deposits . A resident senior citizen who is above sixty years of age or completes sixty years during the financial year can submit form No. 15H , in lieu of FORM 15G

Who is eligible to submit Form 15G
A resident person or HUF , whose tax on the estimated income for the year is nil and the amount of interest income from all the sources does not exceed the minimum exemption limit ( presently Rs 2,50,000/- ), can submit the Form.15G . Please note that both conditions are to be fulfilled to become eligible to submit the form 15G.

Who can submit form No. 15H?
A resident senior citizen who is above sixty years of age or completes sixty years during the financial year can submit form No. 15H provided his estimated tax liability is nil for the financial year though the total amount of interest from all sources may exceed Rs. 2.50 lacs, the minimum amount liable for tax.

Caution : Any wrong or false / wrong declaration attracts penalty under section 277 . A person can be prosecuted and can be liable for 3 months to 7 years of imprisonment for such false declarations . Hence please check your eligibility before submitting the forms .

DOWNLOAD FORM15H DOWNLOAD FORM 15G

LATEST NEWS ON INCOME TAX IN INDIA

CBDT EXTENDS VARIOUS DUE DATES :

Dated 25.04.2021 : As per notification dated 24.04.2021 , Income tax department has extended following due dates to 30th, June 2021 from existing time limit of 30.04.2021 :

(i) Time limit for passing of any order for assessment or reassessment under the  Income-tax Act, 1961(hereinafter called 'the Act' ) the time limit for which is provided under section 153 or section 153B thereof;
(ii) Time limit for passing an order consequent to direction of DRP under subsection (13) of section 144C of the Act;
(iii) Time limit for issuance of notice under section 148 of the Act for reopening  the assessment where income has escaped assessment;
(iv) Time Limit for sending intimation of processing of Equalisation Levy under  sub-section (1) of section 168 of the Finance Act 2016.

It has also been decided that time for payment of amount payable under the Direct Tax Vivad se Vishwas Act, 2020, without an additional amount, shall be further  extended to 30th June, 2021.

The decision is taken  In view of the severe Covid-19 pandemic raging unabated across the country  affecting the lives of our people, and in view of requests received from taxpayers, tax consultants & other stakeholders that various time barring dates, which were earlier
extended to 30th April, 2021 by various notifications .

NOW FORM 10E IS AVAILABLE FOR FILING ON-LINE FOR AY 2021-22
Attn : Persons who have received salary / pension arrears during FY 2020-21

Dated 09.04.2021 : Now Income Tax Department has enabled on-line submission of Form 10E in its e-filing website for Assessment Year 2021-22 . The form is to be submitted by all the persons who want to avail tax relief under section 89 of Income Tax act for the salary / pension arrears received during the financial year 2020-21 .

How to submit Form 10E online ?

1. Go to Income Tax e-Filing website
2. Login using your PAN Number and PASSWORD . Also enter Captcha.
3. Go to E-file and click on Income tax Forms
4. In the next screen , select Form number as " Form10E- Form of relief under u's 89 " - in the dropdown menu
5 . Then select Assessment year as 2021-22 .
6. Then select submission mode as " Prepare & submit 0n-line "

Continue you will get instruction on how to fill and 10E form would be filled with your basic data like PAN Number , Name , Address .
You have to fill details of the arrears received before submission .

Note : The form is to be submitted before filing of Income Tax returns .

For calculating the tax relief you get under section 89 of Income Tax act for the arrears you have received , you may CLICK HERE to visit our webpage where we have detailed the calculation of such arrears you get on salary / gratuity / pension .

LAST DATE TO PAY ADVANCE INCOME TAX IS APPROACHING

Dated 07.03.2021 : The fourth instalment of Advance Income Tax for the Financial Year 2020-21 ( Assessment year 2021-22 ) is to be paid before 15th, March 2021 . The advance income tax payable is the 100 % of income tax estimated less advance income tax already paid in the first three installments .

Under Section 208 of Income-tax Act, every assesses is required to pay advance tax if the tax liability for the previous year exceeds Rs 10,000 . The Tax payable during the financial year itself is called Advance Tax. For individuals with salary as sole source of income,TDS is to deducted by the employer during disbursal of salary and hence question of paying advance tax separately may not arise.

A Resident senior Citizen is exempted for paying advance tax ,if he has no income from business or profession . . He can discharge his tax liability by paying self assessment tax .

For calculating Advance tax Payable , CLICK HERE

CBDT CLARIFIES ON NON-RESIDENT STATUS & DOUBLE TAXATION

Dated 04.03.2021 : In view of various requests received on behalf of NRIs ( Non Resident Indians ) , Central Board of Direct Taxes has relaxed certain provisions for the previous year 2019-20 as well as for the previous year 2020-21 by a notification dated 03.03.2021 .

CLARIFICATIONS FOR THE PREVIOUS YEAR 2019-20 :
Considering the COVID-19 pandemic and the resultant overstay of an individual who had come  to India on a visit before 22nd March 2020, circular no II of 2020 dated 8th May 2020 was issued  by CBDT under section 119 of the Act to avoid genuine hardship in such cases. It was clarified that for the purpose of determining the residential status under section 6 of the Act during the previous year 2019-20 in respect of an individual who has  come to India on a visit before 22nd March 2020 and:

(a) has been unable to leave India on or before 31 st March 2020, his period of stay in  India from 22nd March 2020 to 31st March, 2020 shall not be taken into account; or
(b) has been quarantined in India on account of Novel Corona Virus (Covid-19) on or after 1 st March, 2020 and has departed on an evacuation flight before 31St March 2020  or has been unable to leave India on or before 31st March 2020, his period of stay  from the beginning of his quarantine to his date of departure or 31st March, 2020, as  the case may be, shall not be taken into account; or
( c) has departed on an evacuation flight before 31 5t March 2020, his period of stay in  India from 22l1d March 2020 to his date of departure shall not be taken into account.

CLARIFICATIONS FOR THE PREVIOUS YEAR 2020-21

I. Short stay will not result in Indian residency :  There may be a situation where a person, who was a non-resident during the previous year
2019-20, gets stranded in India by reason of the COVID19 pandemic for some time during  the previous year 2020-21 . In such situations, there are less chances that  the person would acquire residence status in India during the PY 2020-21 only for this reason as explained below: -

A. A citizen of India or a person of Indian origin may become resident in India  only in one of the following situations: -
(i) if his total income from Indian sources (i.e., other than the income  from foreign sources) does not exceed Rs 15 lakhs in PY
2020-21 and he stays in India for 182 days or more during the PY 2020-21; or
(ii) if his total income from Indian sources (i.e., other than the income  from foreign sources) exceed fifteen lakh rupees in PY 2020-21
and  (a) he stays during PY 2020-21 for 182 days or more; or  (b) he stays during the PY 2020-21 for 120.days or more and
also stays for 365 days or more in preceding four previous  years.

B. An Individual who is not citizen of India or a person of Indian origin may  become resident in India only in one of the following situations: -
(i) if he stays during PY 2020-21 for 182 days or more; or
(ii) if he stays during the PY 2020-21 for 60 days or more and also stays  for 365 days or more in preceding four previous years.
Thus, generally, a person will become resident in India for the PY 2020-21 only if  he stayed in India for 182 days or more unless he is covered by the exceptions

DOUBLE TAXATION :  Further circular discusses about possibility of becoming dual non-resident and discusses on Tie breaker rule as per Double Taxation Avoidance Agreement . CBDT feels chances of Double taxation is minimal after the relaxations announced by it . However
if any individual is facing double taxation even after taking into consideration the relief provided by the respective DTAAs, he may furnish the information in Form -NR annexed to this circular by 31st March, 2021. This form shall be submitted electronically to the Principal Chief Commissioner of Income-tax (International Taxation .

For the circular and NR Form , CLICK HERE

CBDT EXTENDS VARIOUS DUE DATES :

Dated 28.02.2021 : As per notification dated 27.02.2021 , Income tax department has extended following due dates :

1. Date for passing of assessment or reassessment orders under the IT Act, that are getting time barred on 31st March, 2021 due to extension of limitation date by the notification dated 31st December, 2020 has been extended to 30th April, 2021 .

2. Date for passing assessment or reassessment orders (not covered by (i) above), that are getting time barred on 31st March, 2021, as per time limit specified in section 153 / 153B of the Income-tax Act, has been extended by 6 months i.e. to 30th September .

3. Date for passing of penalty orders extended to 30th June, 2021.

4 . Date for issue of notice & passing of orders by Adjudicating Authority under the Benami Act extended to 30th September, 2021 .

To go through the notification of IT Department dated 27.02.2021 , CLICK HERE

CBDT has also extended the date for filing of declarations under the #VivadSeVishwas Act, 2020 to 31st March, 2021. Date for payment without additional amount under VSV also extended to 30th April, 2021
( As per notification dated 26.02.2021 )

SECTION 194P OF IT ACT ADDED

SECTION 194 P OF IT ACT AND SENIOR CITIZENS

Dated 04.02.2021 : During the budget speech delivered on 01st , February 2021 , FM Ms Nirmala Sitharaman had promised reduction of compliance burden to he senior citizens who are above 75 years of age .

She had told " I begin my direct tax proposals by offering my pranaam to our senior  citizens. Many of them, despite having foregone several basic necessities of  their own, have strived to build our nation.   Now in the 75th year of Independence of our country, when we  continue our endeavour with renewed vigour, we shall reduce compliance  burden on our senior citizens who are 75 years of age and above. For senior  citizens who only have pension and interest income, I propose exemption . from filing their income tax returns. The paying bank will deduct the  necessary tax on their income "

In fulfillment of the above desire of FM to reduce compliance burden , Government has introduced section 194 P of the IT Act which allows non-submission of IT Returns for persons above 75 years with the following procedures , terms and conditions :

1. Person should have completed 75 years of age before 31.03.2022
2. Senior Citizens should be drawing pension in a " Specified Bank " to be notified by the Government in due course .
3. They should have no other income except interest from that specified bank only where they are drawing pension .
4. Senior Citizen should submit a declaration with regard to the same to the specified bank along with details of eligible rebates . ( Declaration Form will be announced in due course )
5. Specified bank should compute the tax liability of the person and remit to IT Department .

It is apparent that senior citizens who have multiple bank accounts or earning interest from post office deposits will not be eligible under the scheme and hence few persons may be able to utilise the provision .

Finance Bill contains various amendments for IT Act proposed by the government to Loksabha for its approval . One may read the bill by CLICKING HERE   ( Section 194 P is in 47th paragraph of direct tax amendments in the Finance Bill )

To go through Budget details on 01.02.2021 , CLICK HERE

FACELESS PENALTY SCHEME LAUNCHED

FACELESS PENALTY SCHEME 2021 :

15.01.2021 : The Income Tax Department now launched Faceless Penalty Scheme 2021 . Under Faceless Penalty scheme , CBDT will establish Faceless penalty centres including National Faceless Penalty Centre , Regional Faceless Penalty Centres , penalty units and penalty review units . Till such penalty centres are established , Faceless assessment centres will take care of any penalty to be levied .

If any penalty is to be levied to any assessee , the penalty amount will be assessed by Faceless Assessment first and then referred to Faceless Penalty Centers . Then Faceless penalty centres will start penalty proceedings . Penalty will be checked and reviewed by these units and notice will be issued only after a review of the penalty has been done . The communications will only through digital mode like e-mail .

If assessee wants to appeal against any penalty order , one can go through Faceless appeal scheme . Under the Faceless Appeals, in income tax appeals, everything from e-allocation of appeal, e-communication of notice/ questionnaire, e-verification/e-enquiry to e-hearing and finally e-communication of the appellate order, the entire process of appeals is online, dispensing with the need for your visit to the Department. There will be no physical interface between you or your counsels and the Income Tax Department. You can make submissions from the comfort of your home.

To Read the notification dated 12.01.2021 , CLICK HERE

CBDT REJECTS EXTENSION PLEAS :

Dated 12.01.2021 : Central Board of Direct Taxes ( CBDT ) has rejected the pleas made by the various tax associations requesting for further extension of Tax Audit and Income tax Return Filing due dates for the ay 2020-21 .

As per the order issued by CBDT , following due dates remain the same and no further extension will be granted :

1. Non Audit Cases : 10.01.2021 ( Due date is over and one has to file now with penalty )
2. TAX AUDIT : 15.01.2021
3. Return for TAX Audit Cases : 15.02.2021

Income tax department has advised that it had already extended due dates for three times and it is more generous in extending the due dates compared with other countries .

To read the CBDT order in this regard , CLICK HERE

IT CALENDAR 2021 :

Dated 04.01.2021 : Income tax department has published a monthly calendar for the year 2021 , which incorporates and informs about the due dates for tax payments , submission of IT Returns , GST returns , statements etc along with regular holidays . It is of immense help to the tax payers , tax collectors who have to deal with IT Department . One can use it to make IT / GST payments and submit returns and statements without any delay to avoid penalties .

You may download the calendar by CLICKING HERE .

FOR INCOME TAX NEWS OF THE YEAR 2020 AND BEFORE , CLICK HERE

TO KNOW ABOUT TAX ON RETIREMENT BENEFITS , CLICK HERE

HOW TO LINK AADHAAR TO PAN ? CLICK HERE

PLAN YOUR FINANCE PRUDENTLY . For Financial Planning , CLICK HERE

TO GET INSTANT PAN NUMBER WITH NO CHARGES , CLICK HERE

UNION BUDGET 2020-21 AND SENIOR CITIZENS
In our blog article , we have explored what the new IT regime means to senior citizens and what extent senior citizens / retirees / pensioners are gaining / losing from the new regime .As the new regime is optional , one can take studied decisions before opting either of the new or old scheme .

WHAT IS NEW ON PLAN N PROGRESS ?

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THIS ARTICLE CARRIES INFORMATION ON VARIOUS TAX PROVISIONS WHICH ARE GENERALLY USEFUL . YET IT DOES NOT CARRY ALL THE PROVISIONS AND HENCE YOU ARE ADVISED TO GO THROUGH INCOME TAX DEPARTMENT WEBSITES FOR AUTHENTIC COMPLETE INFORMATION , ESPECIALLY FOR THOSE WHO HAVE GOT MULTIPLE STREAMS OF INCOME OR COMPLEX INVESTMENTS . YOU MAY ALSO CONSULT A QUALIFIED TAX CONSULTANT / CHARTERED
ACCOUNTANT FOR ANY CLARIFICATION. READERS ARE ALSO WELCOME TO SEND FEEDBACK , FORM AVAILABLE BELOW . WE ARE OPEN FOR CORRECTION IF NEEDED

For Tax on Retirement Benefits CLICK HERE

FOR AUTHENTIC INFORMATION AND TIPS ON INCOME TAX MATTERS

Income tax dept of Govt of India has a very useful portal which churns out valuable guidance for tax payers . One can go through and understand the basics .
Link to the portal is http://india.gov.in/spotlight/filing-income-tax-returns#itr2

Further there are practical tips for computing tax which can be read and used . For example , the link how to compute other income. One can make use of the portal in understanding law, making payment and also to file returns .

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