CBDT allows One Time Relaxation for Verification of Tax Returns

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-Through this one time relaxation scheme, ITR for FY 2014-15 to FY 2018-19 can be verified, on or before 30th September 2020.
– All such verified ITRs shall be processed on or before 31st December 2020.
– ITRs can be verified digitally through EVC or by sending duly signed a copy to CPC Bangalore.
The Central Board of Direct Taxes (CBDT) on Monday notified the one-time relaxation for verification of tax return for the Assessment Year 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20, which are pending due to non-filing of ITR- V form and processing of such returns.

It has been brought to the notice of CBDT that a large number of electronically filed ITR still remains pending with the Income-Tax Department for want of receipt of a valid ITR-V Form at CPC, Bengaluru from the taxpayers concerned.

In law, consequences of non-filing the ITR-V within the time allowed is significant as such a return is/can be declared Non-est in law. Thereafter, all the consequences for non-filing a tax return, as specified in the Income-tax Act,1961 follow.

“The CBDT, in the exercise of powers under section 119 of the Act, in case of returns for Assessment Years 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20 which were uploaded electronically by the taxpayer within the time allowed under section 139 of the Act and which have remained incomplete due to non-submission of ITR-V Form for verification, hereby permits 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 as listed in para 1 above.

Such verification process must be completed by 30.09.2020,” the circular said.

However, the circular clarified that this relaxation shall not apply in those cases, where during the intervening period, the Income Tax Department has already taken recourse to any other measure as specified in the Act for ensuring filing of a tax return by the taxpayer concerned after declaring the return as Non-est.

“CBDT also relaxes the time-frame for issuing the intimation as provided in the second proviso to sub-section (1) of Section 143 of the Act and directs that such returns shall be processed by 31.12.2020 and intimation of processing of such returns shall be sent to the taxpayer concerned as per the laid down procedure.

In refund cases, while determining the interest, provision of section 244A (2) of the Act would apply,” the circular said.

Read the Original Circular of CBDT

SEBI signs MoU with CBDT for Data Exchange

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“There is a need to create a regulator or authority for data business, which provides centralized regulation for all non-personal data exchanges,” the government-appointed panel said in the report. Such a regulator would be armed with legal powers to request data, supervise data sharing requests and settle disputes“.
A formal Memorandum of Understanding (MoU) was signed today between the Central Board of Direct Taxes (CBDT) and the Securities and Exchange Board of India (SEBI) for data exchange between the two organizations.
 
The MoU was signed by Smt. Anu J. Singh, Pr. DGIT (Systems), CBDT, and Smt. MadhabiPuri Buch, Whole Time Member, SEBI in the presence of senior officers from both the organizations via video conference.

The MoU will facilitate the sharing of data and information between SEBI and CBDT on an automatic and regular basis.

In addition to regular exchange of data, CBDT and SEBI will also exchange with each other, on request and suo moto basis, any information available in their respective databases, for the purpose of carrying out scrutiny, inspection, investigation and prosecution,” SEBI said in a statement.

In addition to regular exchange of data, SEBI and CBDT will also exchange with each other, on request and Suo moto basis, any information available in their respective databases, for the purpose of carrying out their functions under various laws.

The MoU comes into force from the date it was signed and is an ongoing initiative of CBDT and SEBI, who are already collaborating through various existing mechanisms.

A Data Exchange Steering Group has also been constituted for the initiative, which will meet periodically to review the data exchange status and take steps to further improve the effectiveness of the data-sharing mechanism.

The MoU marks the beginning of a new era of cooperation and synergy between SEBI and CBDT.

In the past, SEBI has cracked on several entities who had manipulated the stock prices of listed companies. The regulator had observed in the penny stock scam that promoters and market operators were using the stock exchange platform to evade taxes and launder black money.

Read the Press Release: SEBI signs MOU with CBDT for Data Exchange

GSTN will re-credit late fees collected

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The change in late fee amount made vide notification no. 57/2020 dated 30-06-2020 has been incorporated on the portal. Late fee paid in excess than prescribed in the notification shall be re-credited in due course.

CBIC had vide Noti 57/2020 has stated that that maximum Late Fee for Form GSTR 3B has been capped at Rs. 500 for tax period July 2017 to July 2020 subject to returns being filed before 30th September 2020.

But portal was not updated and it has levied late fees as per old calculation. Hence, GSTN Tech twitter posted that “The change in late fee amount made vide notification no. 57/2020 dated 30-06-2020 has been incorporated on the GST portal.

Late fee paid in excess than prescribed in the notification shall be re-credited in due course.”

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
Notification No. 57/2020 – Central Tax

New Delhi, the 30th June, 2020

G.S.R…..(E).— In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), read with section 148 of the said Act, the Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 76/2018– Central Tax, dated the 31st December, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i) vide number G.S.R. 1253(E), dated the 31st December, 2018, namely :–

In the said notification, after the third proviso, the following provisos shall be inserted, namely: –
“Provided also that for the class of registered persons mentioned in column (2) of the Table of the above proviso, who fail to furnish the returns for the tax period as specified in column (3) of the said Table, according to the condition mentioned in the corresponding entry in column (4) of the said Table, but furnishes the said return till the 30th day of September, 2020, the total amount of late fee payable under section 47 of the said Act, shall stand waived which is in excess of two hundred and fifty rupees and shall stand fully waived for those taxpayers where the total amount of central tax payable in the said return is nil:

Provided also that for the taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year, who fail to furnish the return in FORM GSTR-3B for the months of May, 2020 to July, 2020, by the due date but furnish the said return till the 30th day of September, 2020, the total amount of late fee under section 47 of the said Act, shall stand waived which is in excess of two hundred and fifty rupees and shall stand fully waived for those taxpayers where the total amount of central tax payable in the said return is nil.”.

2. This notification shall be deemed to have come into effect from the 25th day of June, 2020.

[F. No. CBEC-20/06/08/2020-GST]
(Pramod Kumar)
Director, Government of India

Note: The principal notification No. 76/2018-Central Tax, dated 31st December, 2018 was published in the Gazette of India, Extraordinary, vide number G.S.R. 1253(E), dated the 31st December, 2018 and was last amended vide notification number 52/2020 – Central Tax, dated the 24th June, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.405 (E), dated the 24th June, 2020.

Govt Notification

Cooperative banks to be brought under RBI supervision

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Government banks, including 1,482 urban cooperative banks and 58 multi-state cooperative banks, are now being brought under the supervisory powers of the RBI.
RBI’s powers will also apply to the cooperative banks as they apply to scheduled banks.

The Union Cabinet on Wednesday decided to bring all co-operative banks under the Reserve Bank of India through an ordinance. This was announced by Union information and broadcasting minister Prakash Javadekar during a virtual press conference.

“Government banks, including 1,482 urban cooperative banks and 58 multi-state cooperative banks, are now being brought under supervisory powers of Reserve Bank of India (RBI),” Javadekar said today. These banks will come under the supervision of RBI with immediate effect from date of President’s approval on the ordinance.

After the Punjab and Maharashtra Cooperative (PMC) Banks fiasco last year, the Union Cabinet in February amended Banking Regulation Act to strengthen the cooperative banks in the country. During Budget 2020, Finance Minister Nirmala Sitharaman also announced that cooperative banks will be brought under the ambit of RBI.

There are more than 8.6 crore depositors in over 1,500 urban and multi-state cooperative banks across the country. “Depositors’ money amounting to ₹4.84 lakh crore in the cooperatives banks will stay safe,” Javadekar said while announcing the decision.

The government also announced to provide 2% interest subvention to borrowers under the ‘Shishu’ category of the flagship Pradhan Mantri MUDRA Yojana (PMMY). Under the Shishu category, collateral free loans of up to ₹50,000 will be given to beneficiaries.

“The Union Cabinet has approved the scheme for interest subvention of 2% to Shishu loan category borrowers under PMMY, outstanding as on March 31, 2020, for a period of 12 months to eligible borrowers,” Javadekar said.

Launched in 2015, the Pradhan Mantri MUDRA Yojana provides loans up to ₹10 lakh to non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY. Commercial banks, RRBs, small finance banks, MFIs and NBFCs provide MUDRA loans.

In the wake of coronavirus outbreak, the central government decided to extend the tenure of the OBC Commission by six months, Union minister Prakash Javadekar said. The government also announced ₹15,000-crore infrastructure fund to provide interest subvention of up to 3% to private players for setting up of dairy, poultry and meat processing units.

“A fund worth ₹15,000 crore has been approved by the Cabinet that will be open to all and will help in increasing milk production, boost exports and create 35 lakh jobs in the country,” Javadekar told.

Source: Economic Times

Continued

Companies get more time to meet deposit repayment and debenture reserve norms amid COVID-19

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Company Law
• The extension is applicable to both deposits as well as debentures maturing this fiscal
• The extension is given in view of the requests received from various stakeholders seeking more time on account of covid-19
• The move comes at a time when businesses are struggling with a weak balance sheet after the national lockdown

The government has given a three-month extension to companies to set aside a part of the deposits and debentures maturing in FY21 in a dedicated account, a statutory requirement under the Companies Act.

The Ministry of  Corporate Affairs (MCA) said in a circular that the due date of April end, which was extended till end of June in a circular in March, has been further extended till end of September, 2020.

The circular, signed on Friday, said the extension was given in view of the requests received from various stakeholders seeking more time on account of covid-19.

The extension is applicable to both deposits as well as debentures maturing this fiscal. The Companies (Share Capital and Debentures) Rules of 2014 said every company needs to set up a Debenture Redemption Reserve before end of April every year and deposit in that not less than 15% of the debentures maturing in that year. This investment could be in the form of bank deposits or central and state government securities or specified corporate bonds.

Similarly, companies accepting deposits from its members have to deposit not less than 20% of such deposits maturing in a financial year and in the subsequent financial year in a scheduled bank in a separate account called deposit repayment reserve account. For this requirement under the Companies Act too, the government had in March given three months extra time till end of June. Due dates for both the requirements now stand extended till end of September, 2020.

The move comes at a time when businesses are struggling with a weak balance sheet after the national lockdown to check the spread of coronavirus infections wiped out two months of business. The government’s over ₹20 trillion stimulus package relied mostly on bank credit to businesses rather than on more upfront measures.

The Ministry of  Corporate Affairs (MCA) has in the last few months taken a series of steps that will reduce the compliance burden and lower the cost of capital for businesses.

Source: MCA Circular dated 19 June 2020

GST Council provides relief for GSTR 3B delays

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GST Council, has recommended to reduce / waive the interest/ late fee for delayed filing of GSTR 3B by small taxpayers (having turnover upto Rs. 5 crores) for the tax period from July 2017 to July 2020
The ministry further said it has also taken a note of difficulties and concerns expressed by the taxpayers regarding filing of GSTR-3B and other returns.

The 40th GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman through video conferencing here today- 12th June 2020. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States & UTs and senior officers of the Ministry of Finance& States/ UTs.

GST Council, has recommended to reduce / waive the interest/ late fee for delayed filing of GSTR 3B by small taxpayers (having turnover upto Rs. 5 crores) for the tax period from July 2017 to July 2020, as under:

  1. Reduction in Late Fee for Past Returns (July 2017 to January 2020)

As a measure for trade facilitation and to clean-up the pendency in filing of GSTR 3B for the period from July 2017 to January 2020, the GST Council has recommended to reduce/ waive the late fee for past returns, as under:

  1. a) ‘NIL’ late fee if there is no tax liability;
  2. b) Maximum late fee capped at Rs. 500/- per return if there is any tax liability.

The reduced rate of late fee would apply for all the GSTR-3B returns furnished between 01.07.2020 to 30.09.2020.

  1. Relief for filing of returns for February – April 2020

Further GST Council has recommended to provide relief for small taxpayers (having turnover upto Rs. 5 Crores) by way of reduced interest of 9% in lieu of 18% upto 30 Sept. 2020, for late filing of returns for the tax periods February, March and April 2020. This interest shall be charged beyond specified last date (staggered upto 6th July 2020) for filing of GSTR 3B return for the said tax periods.

  1. Relief for filing of returns for May – July 2020

Also, GST Council has recommended to provide relief for small taxpayers (having turnover upto Rs. 5 Crores) by way of waiver of interest and late fee upto 30 Sept. 2020, for late filing of GSTR 3B return for the tax periods May, June and July 2020.

Recommendations of GST council related to Law & Procedure

The GST Council has made the following recommendations on Law & Procedures changes.

  1. Measures for Trade facilitation:
  2. Reduction in Late Fee for past Returns:

As a measure to clean up pendency in return filing, late fee for non-furnishing FORM GSTR-3B for the tax period from July, 2017 to January, 2020 has been reduced / waived as under: –

  1. i) ‘NIL’ late fee if there is no tax liability;
  2. ii) Maximum late fee capped at 500/- per return if there is any tax liability.

The reduced rate of late fee would apply for all the GSTR-3B returns furnished between 01.07.2020 to 30.09.2020

  1. b) Further relief for small taxpayers for late filing of returns for February, March & April 2020 Tax periods:

For small taxpayers (aggregate turnover upto Rs. 5 crore), for the supplies effected in the month of February, March and April, 2020, the rate of interest for late furnishing of return for the said months beyond specified dates (staggered upto 6th July 2020) is reduced from 18% per annum to 9% per annum till 30.09.2020. In other words, for these months, small taxpayers will not be charged any interest till the notified dates for relief (staggered upto 6th July 2020)and thereafter 9% interest will be charged till 30.09.2020.

  1. c) Relief for small taxpayers for subsequent tax periods (May, June & July 2020):

In wake of COVID-19 pandemic, for taxpayers having aggregate turnover upto Rs. 5 crore, further relief provided by waiver of late fees and interest if the returns in FORM GSTR-3B for the supplies effected in the months of May, June and July, 2020 are furnished by September, 2020 (staggered dates to be notified).

  1. d) One time extension in period for seeking revocation of cancellation of registration:

To facilitate taxpayers who could not get their cancelled GST registrations restored in time, an opportunity is being provided for filing of application for revocation of cancellation of registration up to 30.09.2020, in all cases where registrations have been cancelled till 12.06.2020.

  1. Certain clauses of the Finance Act, 2020 amending CGST Act 2017 and IGST Act, 2017 to be brought into force from 30.06.2020.

Note: The recommendations of the GST Council have been presented in this release in simple language for information of all stakeholders. The same would be given effect through relevant Circulars/ Notifications which alone shall have the force of law.

Council to meet again in July to specially discuss how the government can pay off states for the compensation cess dues, since the funds are falling short.