Key changes notified in the ITR forms the Asst Year 2020-21

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0
The Central Board of Direct Taxes (CBDT) has notified new Income-tax Return (ITR) forms applicable for the Assessment Year 2020-21.

CBDT notified Income Tax Return forms of FY 2020-21

G.S.R. 338(E).— In exercise of the powers conferred by section 139 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes has made the rules to amend the Income-tax Rules, 1962.

The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide notification number S.O. 969(E), dated the 26th March, 1962 and last amended by the Income-tax (11th Amendment) Rules, 2020, vide notification number G.S.R. 329 (E) dated 28.5.2020.

In essence, the following are the key changes:

  1. House ownership: Individual taxpayers who are joint owners of house property cannot file ITR 1 or ITR4.
  1. Passport: One needs to disclose the Passport number if held by the taxpayer. This is to be furnished both in ITR 1-Sahaj and ITR 4-Sugam. Hopefully, it will be made mandatory in other ITR Forms as and when they are notified.
  1. Cash deposit: For those filing ITR 4-Sugam, it has been made compulsory to declare the amount deposited as cash in a bank account, if such amount exceeds Rs 1 crore during the FY.
  1. Foreign travel: If you have spent more than Rs 2 lakh on travelling abroad during the FY, you need to disclose the actual amount spent.
  1. Electricity consumption: If your electricity bills have been more than Rs 1 lakh in aggregate during the FY, you need to disclose the actual amount.
  1. Investment details: Details of investment qualifying for deduction under chapter VIA with bifurcation of details of investment made during the period from April 1, 2020 to June 30, 2020.
  2. A new schedule ‘Schedule DI’ has been inserted to claim benefit of investment/ deposit/payments made between 01-04-2020 to 30-06-2020 for the previous year 2019-20.

Download the ITR Forms for Asst Year 2020-21

CBDT replaces Annual Statement of TDS/TCS with new Annual Information Statement

by | posted in: Accounting Standards, Audit, Due Diligence, Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0
The amendment, aims at controlling tax evasion, and bring glassiness Form 26AS, which is now being replaced with a new Annual Information Statement (AIS) i.e Form 26AIS.

The Central Board of Direct Taxes (CBDT) on Thursday notified Income Tax (11th Amendment) Rules, 2020.

In exercise of the powers conferred by section 285BB read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

In Income Tax Rules, 1962 Rule 114-I relating to Annual Information shall be inserted which is, “the Principal Director General of Income Tax (System) or the Director-General of Income Tax (Systems) or any person authorized by him shall, under Section 285BB of the Income-Tax Act, 1961, upload in the registered account of the assessee an annual information statement in Form No. 26AS containing the information specified in the column (2) of the table below, which is in his possession within three months from the end of the month in which the information is received by him.”

The notification consists of a table that contains the nature of information which includes information relating to a tax deduction or collected at source; specified financial transaction; payment of taxes; demand and refund; pending proceedings; and completed proceedings:

Sl. No. Nature of information
(i) Information relating to tax deducted or collected at source
(ii) Information relating to specified financial transaction
(iii) Information relating to payment of taxes
(iv) Information relating to demand and refund
(v) Information relating to pending proceedings
(vi) Information relating to completed proceedings
(vii) Any other information in relation to sub-rule (2) of rule 114-I

The amendment, aims at  controlling tax evasion, and bring glassiness Form 26AS, which is now  being replaced with a new Annual Information Statement (AIS) i.e Form 26AIS.

Further sub-clause (2) of Rule 114-I says, “the Board may also authorize the Principal Director General of Income-tax (System) or the Director-General of Income Tax (Systems) or any person authorized by him to upload the information received from any officer, authority or body performing any function under any law or the information received under an agreement referred to in Section 90 or Section 90A of the Income Tax Act, 1961 or the information received from any other person to the extent as it may deem fit in the interest of the revenue in the annual information statement referred to in sub-clause (1).”

Lastly, sub-clause (3) of Rule 114-I says, “the Principal Director General of Income-tax (System) or the Director-General of Income Tax (Systems) shall specify the procedures, formats, and standards for the purpose of uploading of annual information statement referred to in sub-clause (1).”

Income Tax Refunds of Rs. 26,242 crores issued since 1st April 2020: CBDT

by | posted in: Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0
Income-tax refund of Rs 14,632 crore to 15,81,906 assesses and corporate tax refund amounting to Rs 11,610 crore to 1,02,392 assesses have been processed during this period, the CBDT said in a statement.

Income Tax Deptt. has issued refunds of Rs. 26,242 crores since 1st April 2020 to 16.84 lac individual/ corporate assessees. Further, the refund process has been geared up for necessary action to match the Aatma Nirbhar Bharat initiative (COVID-19) announced by PM/ FM recently.

CBDT Press Release dt. 22 May 2020

Central Board of Direct Taxes (CBDT) has issued tax refunds worth Rs. 26,242 crore to 16,84,298 assessees since 1st April, 2020 to 21st May, 2020.

Income Tax refunds amounting to Rs. 14,632 crore have been issued to 15,81,906 assessees and corporate tax refunds amounting to Rs. 11,610 crore have been issued to 1,02,392 assessees during this period.

It is stated that the refund process has been further expedited and refunds are being issued at a greater pace since the Union Finance Minister Smt. Nirmala Sitharaman’s announcement made in the Aatma Nirbhar Bharat Abhiyan last week. CBDT has released a sum of Rs. 2050.61 crore in the previous week ended on 16th May, i.e., between 9th to 16th May, 2020 to 37,531 income tax assessees and a sum of Rs. 867.62 crore to 2878 corporate tax assessees. During this week, i.e. between 17th to 21st May, 2020, yet another 1,22,764 income tax assessees were refunded Rs. 2672.97 crore and 33,774 corporate tax assessees including trusts, MSMEs, proprietorships, partnerships, etc. were issued refunds worth Rs. 6714.34 crore, taking the total amount refunded to Rs. 9387.31 crore in the case of 1,56,538 assessees.

Read the Press  Release

Govt. extends Due Dates of all Income Tax Returns for FY 2019-20

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0

Atmanirbhar economic package: ITR deadline extended to Nov 30, 2020 for FY 2019-20 and tax audit from September 30, 2020 to 31st October 2020.”

The Central Government has extended the all due dates of all Income Tax Returns for the Financial Year 2019-20 amid COVID-19 outbreak.

Due date of all income-tax return for FY 2019-20 will be extended from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October, 2020.

The Finance Minister Nirmala Sitharaman also said that, All pending refunds to charitable trusts and non-corporate businesses & professions including proprietorship, partnership, LLP, and Co-operatives shall be issued immediately.

The Date of assessments getting barred on 30th September, 2020 extended to 31st December, 2020 and those getting barred on 31st March, 2021 will be extended to 30th September, 2021.

The Period of Vivad se Vishwas Scheme for making payment without an additional amount will be extended to 31st December, 2020.

TDS / TCS Rates for non-salaried payments reduced by 25% till March 31, 2021

by | posted in: Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0

The reduced TDS and TCS rate will be for specific payments such as payment for a contract, professional fees, interest, rent etc.

In order to provide more funds at the disposal of the taxpayers, the rates of Tax Deduction at Source (TDS) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts has been be reduced by 25% of the existing rates.

The Finance Minister Nirmala Sitharaman said that, Payment for the contract, professional fees, interest, rent, dividend, commission, brokerage, etc. shall be eligible for this reduced rate of Tax Deduction at Source.

This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. from tomorrow 14th May 2020 to 31st March, 2021.

The Finance Minister also said that, It will help to Rs 50,000 crores liquidity through TDS/TCS rate reduction.

She also said that the income tax department has already cleared Rs 18,000 crore worth of refunds where the quantum due was up to Rs 5 lakh and instructed that all pending refunds to charitable trusts and non-corporate business and professions will be issued immediately.

TDS rate was not deducted on salaries, after considering various eligible deductions such as 80C of the salaried person. This had been done to ensure that the salaried individual did not bear the burden of paying higher taxes at the year end.