No Due Date Extension for filing Income Tax – CBDT

CBDT confirms News of Income Tax Return filing due date extension in Social Media is Fake

 

CBDT – extension in due date for non-tax audit cases is fake and there are no such plans to extend this deadline beyond 31st July, 2018

CIRCULAR No.4/2018

 

F.No.370889/25/2018
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

 

New Delhi, Dated 21st July, 2018

 

Order under section 139(1) of the Income-tax Act, 1961 (‘the Act’)

This Circular is issued in pursuant to 139(1) of the Tax Act, 1961 is to clarify that rumors spreading across in media regarding extension in due date for non-tax audit is fake and no such plans to extend this deadline beyond 31st July, 2018. The department already received over 1 crore returns filed electronically.

As per Section 234F of the Income Tax Act, from 1st April 2018, the penalty for late filing income tax return would be as

(a) five thousand rupees, if the return is furnished on or the 31st day of December of the assessment year;

(b) ten thousand rupees in any other case:

Provided further that if the total income of the person not exceed five lakh rupees, the fee payable under this section shall not exceed one thousand rupees. Therefore, the assessees are hereby asked to file their ITRs before the due date to avoid the penalty.

 

(Sanyam Suresh Joshi)

DCIT, CBDT

Copy to:

1. PS to FM/OSD to FM/PS to MoS(F)/OSD to MoS(F)
2. PS to Secretary (Revenue)
3. Chairman, CBDT
4. All Members, CBDT
5. All Pr. DGsIT/Pr. CCsIT
6. All Joint Secretaries/CsIT, CBDT
7. Directors/Deputy Secretaries/Under Secretaries of CBDT
8. DIT (RSP&PR)/Systems, New Delhi
9. The C&AG of India (30 copies)
10. The JS & Legal Adviser, Ministry of Law & Justice, New Delhi
11. The Institute of Chartered Accountants of India
12. All Chambers of Commerce
13. CIT (M&TP), Official Spokesperson of CBDT
14. O/o Pr. DGIT (Systems) for uploading on official website

Source: CBDT_Circular

GST payers can move jurisdictional tax officer to change username, password

 

Taxpayer would be required to approach the concerned jurisdictional tax officer to get the password for the GST Identification Number (GSTIN) allotted to the business

The Finance Ministry on Thursday said that GST registrants can approach jurisdictional tax officer with valid documents to change the e-mail and mobile number recorded against their GST identification number (GSTIN).

 

The revenue department had received complaints from taxpayers that the intermediaries who were authorised by them to apply for registration on their behalf had used their own e-mail and mobile number during the process.

 

These intermediaries are not sharing the user details with the taxpayers.

 

“With a view to address this difficulty of the taxpayer, a functionality to update e-mail and mobile number of the authorised signatory is available in the GST system.

 

“The e-mail and mobile number can be updated by the concerned jurisdictional tax authority of the taxpayer,” the ministry said in a statement.

 

Taxpayer would be required to approach the concerned jurisdictional tax officer to get the password for the GSTIN allotted to the business. Taxpayers can check jurisdiction through ‘Search Taxpayer’ option available on GST portal.

 

Taxpayer would be required to provide valid documents to the tax officer as proof of his/her identity and to validate the business details related to his GSTIN. Following this, the officer would authenticate the activity and enter the new e-mail address and mobile number provided by the taxpayer.

 

After uploading of the documents, tax officer will reset the password for GSTIN in the system and username and temporary password reset will be communicated to the e-mail address as entered by the officer.

 

Taxpayer would then have to login on GST portal using the username and temporary password e-mailed to him. The username and password can now be changed by the taxpayer.

 

Source: Business Standard

GST refund drive extended till June 16

Relief for exporters as govt extends special GST refund drive till June 16

The Central Board of Indirect Taxes and Customs (CBIC) has extended the refund fortnight for fast track clearance of pending dues to exporters by two days till June 16.

The central and state tax officials have already cleared refunds worth over Rs 7,500 crore since May 31, when the special drive to clear exporters refund was launched.

“In view of overwhelming response from exporters and pending claims, the period of refund fortnight is being extended by two more days i.e up to June 16, 2018,” a finance ministry statement said.

With about Rs 14,000 crore of exporters refunds stuck due to various mismatches, the CBIC had organised the second phase of the special fortnight to fast track clearances.During the first phase, between March 15 and 29, an amount of Rs 5,350 crore was sanctioned.

The ministry further said, in case of short payment of integrated GST (IGST), small exporters whose aggregate IGST refund amount for the period July 2017 to March 2018 is up to Rs 10 lakhs are required to submit self-certified copies of proof of payment of IGST to the concerned customs office at the port of export.

Others are required to submit a certificate from a Chartered Accountant including the proof of payment.

All GST refund claimants, whose claims are still pending, are being encouraged to approach their jurisdictional tax authority for disposal of their refund claims submitted on or before April 30, the statement said.

“In case of any problem, exporters are advised to approach the Commissioner of Customs /Jurisdictional Tax Authorities. The government is committed to clear all the remaining refund claims filed up to 30.04.2018 are still pending,” it added.

GST monthly revenue touches Rs 1 lakh crore for first time; govt credits better compliance

The government announced today that the GST revenue for the month of April has crossed Rs 1 lakh crore – a first since GST was rolled out in July last year. As mentioned by the Ministry of Finance, the total gross GST revenue collected in April is Rs 1,03,458 crore.

Out of that CGST (Central GST) amounted to Rs 18,652 crore, while SGST (State GST) amounted to Rs 25,704 crore. IGST (Integrated GST) stood at Rs 50,548 crore, including Rs 21,246 crore that was collected on imports, and cess at Rs 8,554 crore, including Rs 702 crore collected on imports.

As mentioned in ANI, the finance ministry also noted that the central and state governments earned a total revenue of Rs 32,493 crore in CGST and Rs 40,257 in SGST, after settlement in April.

Moreover, the ministry noted that out of 87.12 lakh, 60.47 lakh GSTR 3B returns were filed for March till April 30. That makes 69.5% of the eligible proportion. The ministry also said that 11.47 lakh out of 19.31 lakh composition dealers filed their quarterly return (GSTR 4), amounting to 59.40%. In total Rs 579 crore in taxes were paid, which is included in the aforementioned GST revenue figure.

The ministry said, “The buoyancy in the tax revenue of GST reflects the upswing in the economy and better compliance. However, it is usually noticed that in the last month of the financial year, people also try to pay arrears of some of the previous months. Therefore, this month’s revenue cannot be taken as a trend for the future.”

The recently introduced e-way bill might be the reason behind the sudden spike in GST revenues. E-way bill, which is generated for consignments moving inter-state or intra-state was rolled out in April. The inter-state e-way bill was introduced in April 1, while the intra-state one was pushed to April 15.

The GST Council is scheduled to meet on May 4 next.

Source: Business Today

CBEC to verify GST transitional credit claims of 50,000 taxpayers

In order to check “frivolous and fraudulent” tax credit claims by businesses, the CBEC has decided to verify demands of top 50,000 tax payers claiming maximum GST transitional credit, starting with those where the quantum exceeds Rs 25 lakh.

The verification of “unreasonable” transitional credit claims would be conducted in four phases, a source said, adding that credit verification will remain one of the focus areas in 2018-19.

As part of transition to GST last July, taxpayers were allowed to file Form TRAN-1 and avail tax credit on the basis of closing balance of the credit declared in the last return under the pre-Goods and Services Tax regime.

In order to check “frivolous and fraudulent” transitional credit claims, the CBEC has shared with field offices the list of 50,000 taxpayers whose claims would be further scrutinised.

It is suspected that some of these businesses might have obtained a registration under the GST only to claim transitional credit benefits, the source added.

In the first phase, the tax officers will verify transitional credit claims where the growth is more than 25 per cent or the credit availed is in excess of Rs 25 lakh. This verification is to be completed by June and a status report has to be given to the Central Board of Excise and Customs (CBEC) by July 10.

One-third of the remaining claims of 50,000 taxpayers will be verified in three phases — July-September, October-December and January-March (2019).

Taxpayers who have claimed transitional tax credit of more than Rs 25 lakh and have reported 25 per cent increase in such claims are also likely to be asked to submit a detailed statement of purchases during October 1, 2016, to June 30, 2017, the source said.

According to revenue department data, as much as Rs 65,000 crore of transitional input tax credit was claimed by businesses as on September 2017.

Concerned over large claims for which there was no “bona-fide explanation”, the revenue department had asked taxpayers to revise their claim forms by December 27, 2017, or face enforcement action.

Worried over huge claims, the CBEC conducted a “preliminary scrutiny” following which it has now decided to further verify the “correctness of the transitional credit in a more focused and concerted manner”, the source said.

However, in a communication to the field formation, the CBEC said that efforts should be made on the basis of data already available with the department without contacting the taxpayer.

It further said wherever contact with taxpayers is absolutely essential, it should be done with due caution.

“Summon should be issued only where the taxpayer is not sharing information even after repeated requests and lapse of an unreasonable period of time,” it said.

AMRG & Associated Partner Rajat Mohan said the move comes amid disappointing tax collections.

“A detailed verification of transitional credit for pre-decided 50,000 GSTIN on all India basis comes as a no surprise. Credit verification would be a focus area in the new financial year, and big data analytics would be of great aid,” Mohan said.

As per a finance ministry reply to the Lok Sabha, GST mop up was Rs 93,590 crore in July, Rs 93,029 crore in August, Rs 95,132 crore in September and Rs 85,931 crore in October.

The collections in November stood at Rs 83,716 crore, December (Rs 88,929 crore) and January (Rs 88,047 crore).

Source:  Times of India

Income Tax Return filing deadline: Waiver on LTCG Tax to end on 31 March

Tax liability on long term capital gains (LTCG) at the rate of 10% will accrue only when the shares or mutual funds are sold after April 1, 2018.

In the Budget 2018, Union Finance Minister Arun Jaitley had introduced long term capital gains (LTCG) on sale of equity and mutual funds, which will be taxed from April 1 onwards. One must remember that any capital gains arising out of sale of shares in this financial year (2017-18), which means prior to March 31 this year, will not attract any long term capital gains tax.

Seven Things To Know About Tax On LTCG Arising On Equity/ Mutual Funds Sale

1. Tax liability on long term capital gains (LTCG) at the rate of 10% will be charged only when the shares or mutual funds are sold after April 1, 2018.

2. The tax liability will not arise if the shares or mutual funds are sold, at whatever premium, before the beginning of April since the new legislation will come in force with effect from the next financial year, which is April 1.

3. For the tax on LTCG to get liable, there must be a difference of at least Rs. 1,00,000 between the cost of acquisition and the amount of sale.

4. The time period of one year will be calculated from the date of acquisition even if the time period falls in the previous financial year, which is 2017-18.

5. Any gains prior to January 31 are grandfathered. This means the capital gains will be zero if the sale price is more than the cost of acquisition but less than the value on March 31.

For instance, an equity share is acquired on January 1, 2017 at Rs. 100, its fair market value is Rs. 200 on January 31, 2018 and it is sold on April 1, 2018 at Rs. 150.

In this case, the actual cost of acquisition is less than the fair market value as on January 31, 2018. However, the sale value is also less than the fair market value as on 31st of January, 2018. Accordingly, the sale value of Rs. 150 will be taken as the cost of acquisition and the long-term capital gain will be NIL (Rs. 150 – Rs. 150).

6. The tax payer will stand to gain when the shares market price on January 31 was lower against the acquisition cost. Since the higher of two values is chosen (between the cost of acquisition and the price on January 31), the investor stands to gain. Sample this. An equity share is acquired on 1st of January, 2017 at Rs. 100, its fair market value is Rs. 50 on 31st of January, 2018 and it is sold on 1st of April, 2018 at Rs. 150.

In this case, the fair market value as on 31st of January, 2018 is less than the actual cost of acquisition, and therefore, the actual cost of Rs. 100 will be taken as actual cost of acquisition and the long-term capital gain will be Rs. 50 (Rs. 150 – Rs. 100).

7. When the selling price is lower than both cost of acquisition and price on January 31, then instead of the higher of the two values, one has to take the lower of two values for computing the capital gains. Sample this. An equity share is acquired on 1st of January, 2017 at Rs. 100, its fair market value is Rs. 200 on 31st of January, 2018 and it is sold on 1st of April, 2018 at Rs. 50. In this case, the actual cost of acquisition is less than the fair market value as on 31st January, 2018. The sale value is less than the fair market value as on 31st of January, 2018 and also the actual cost of acquisition. Therefore, the actual cost of Rs. 100 will be taken as the cost of acquisition in this case. Hence, the long-term capital loss will be Rs. 50 (Rs. 50 – Rs. 100) in this case.

 

Source: NDTV