CA. Praveen Sharma GST Mitra

  In my Form 26AS for AY 2021-22, salary amounting to Rs 29 lakh is reflected in Part A under Section 92 and dividends from Infosys , Tata, Hero, Mahindra , SKF amounting to Rs 1226 are reflected in Part A under Section 94. TDS has been deducted and deposited on salary. However, no TDS has been deducted on dividends. Which ITR form is to be filled? Till now I was filling ITR Form 1. —Sushil Agrawal Assuming that you have income only from salary and dividends, you may continue to declare income in ITR-1. Disclosure may be made under head ‘Salary” and “other sources”. Notably, TDS has not been deducted on dividends because the same is less than Rs 5,000. However, you have to disclose the dividend income in the ITR. If you have income from sale/ redemption of shares in the form of capital gains, then you shall not be eligible to file ITR-1, disclosure shall then have to be made in ITR 2. Last year we sold the house which was in my mother’s name. My father had spent on renovation but w...

  Starting from SBI ATM withdrawal charges to ITR filing, 5 things are going to change from next month. Apart from this, many other changes are also going to happen in the banking sector in July 2021. As per updates, the State Bank of India has revised its charges and rules for cash withdrawals from its Automated Teller Machines (ATMs) and branches. And the Central government said that certain taxpayers may face Tax Deduction at Source (TDS) at higher rates from next month. Moreover, the LPG cylinder prices will also be revised from next month. Here’s a detailed list of key changes that will come into effect from July 1 For the SBI customers, it must be noted that charges will be imposed against cash withdrawals from SBI’s ATMs as well as the branches. The Bank has already mentioned that the account holders will be eligible for four free cash withdrawals from the bank’s ATMs and branches. After exhausting the free withdrawals, the SBI will charge Rs 15 plus Goods and Services Tax ...

  The Goods and Services Tax (GST) collection in June may miss the Rs 1 lakh crore-mark for the first time in last eight months due to the disruptions caused by the second wave of COVID-19 pandemic, which led to imposition of localised lockdowns across the nation. E-way bill data for May indicates subdued supply due to lockdown restrictions in the month, which will have a bearing on June revenue. June GST revenue pertains to transactions that take place in the month of May. According to GST Networks (GSTN), the technology backbone of GST, e-way bills witnessed a 30 per cent decline in May over April. Against a generation of 5.87 crore e-way bills in April, only 3.99 crore e-way bills were generated in the month of May. Under the GST regime, a registered supplier cannot transport goods over Rs 50,000 without generation of an e-way bill. The bill is therefore an instrument for tracking the supply. Without divulging details on GST revenue trend so far in the month of June, an official...

  देश में पेट्रोल की कीमत आसमान छू रही है. वहीं दूसरी तरफ इलेक्ट्रिक टू-व्हीलर्स की कीमतों में सरकार राहत दे रही है. सरकार ने फास्टर एडॉप्शन एंड मैन्युफैक्चरिंग ऑफ इलेक्ट्रिक व्हीकल (FAME II) स्कीम के तहत इलेक्ट्रिक टू-व्हीलर पर लगने वाले GST को कम कर दिया है. जहां पहले GST दर 12 प्रतिशत थी वहीं अब इसे घटाकर पांच प्रतिशत कर दी गई है. जिसके बाद इनकी कीमतों में 28 हजार तक कमी देखने को मिली है. आइए जानते हैं किस इलेक्ट्रिक टू-व्हीलर पर कितने रुपये कम किए गए हैं. Revolt RV 400 रिवोल्ट मोटर्स की Revolt RV 400 की कीमत 28,200 रुपये तक कम कर दी है, जिसके बाद इसकी प्राइस 62,599 हो गई है. इससे पहले इसके दाम एक्स-शोरूम 90,799 रुपये थे. इसमें कंपनी ने 5kW का इलेक्ट्रिक मोटर का इस्तेमाल किया है. इस इलेक्ट्रिक बाइक में तीन राइडिंग मोड दिए गए हैं जिसमें इको, नार्मल और स्पोर्ट शामिल है. इस पर कंपनी आठ साल या फिर 1.5 लाख किलोमीटर तक की वारंटी दे रही है. TVS iQube Electric TVS मोटर्स के इस साल लॉन्च हुए TVS iQube इलेक्ट्रिक स्कूटर के दाम बेहद कम हो गए हैं. रिवाइज्ड FAME II सब्सिडी की वजह से इस स्क...

  The GST digital compliance and tax administration framework is unprecedented in its scale and ambit, and forms the backbone for the reform. Achievements on this front are exemplary and will be emulated globally. Last year, it was visionary of the revenue secretary to push ahead with the digital agenda through the pandemic, despite protests. E-invoicing for large taxpayers having turnover above Rs 100 crore was implemented. This, coupled with a proactive use of analytics, has enabled the administration to check evasion. The collection efficiency has significantly improved. The Q4FY21 collections indicate a 15-20% growth compared with FY 19 (see graphic). Stronger collections should provide flexibility to focus on the necessary structural reforms. In FY21, approximately `7 lakh crore (based on Union Budget RE and all states BE) excise duties and state VAT collected on commodities excluded from the GST net account for 30% of all commodity taxes and duties. A lion’s share of these co...

  The government extended deadlines for various income tax compliances last week, including Form No.16, which is required to be furnished by the employer by July 31. The certificate of Tax Deducted at Source or TDS in Form No.16, required to be furnished to the employee has been extended till July 31, from July 15, 2021. "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 the compliance burden of taxpayers during this difficult time, reliefs are being provided...," the Central Board of Direct Taxes (CBDT) said in a statement. The Finance Ministery said in a statement, "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, maybe furnished on or before 31st July 2021". Form-16 is a TDS Certifi...

  The Central Board of Direct Taxes (CBDT) has recently extended various deadlines related to income tax to provide some relief in the wake of second wave of coronavirus outbreak. Now taxpayers will have time till July 15 to file the TDS for the last quarter of financial year 2020-21. However, there has been no changes in certain deadlines. Some taxpayers need to pay Tax Deducted at Source (TDS) at higher rates, starting from the next month. The Income Tax department had introduced a new Section 206AB in the Budget 2021 to deduct TDS at higher rates for certain non-filers. The rule will be applicable from July 1. If a taxpayer has not filed TDS in the last two years and aggregate of TDS exceeds Rs 50,000 in each year, the Income Tax department will charge more while filing the income tax returns (ITR) from July 1. The rate of TDS will be either twice the rate specified under the relevant section or provision or five per cent, whichever is higher. To check whether a taxpayer will ...

  On the fourth anniversary of GST, a historic tax reform, these words of wisdom hold great significance to policymakers and administrators. India has crossed several important milestones over the last three years of GST. The monthly revenue collection has crossed the Rs 1 lakh crore mark for the last eight months in a row. Is this not an opportune moment to introspect as to what needs to be done now to make GST a sustainable and dependable revenue stream in the future? Tax administrations across the globe seek to mobilise revenue in a way that does not impose an unnecessary compliance burden on taxpayers. Since the launch of GST in India, a host of taxpayer services have been enabled—ranging from online registration to e-payment and e-filing of returns and refund applications. The filing of E-Way Bills and e-Invoices has been streamlined. Of late, several GST-related compliances have been relaxed to mitigate the impact of the pandemic, especially on the MSME sector. However, there...

  An Odisha government agency working under the Goods and Services Tax (GST) directorate on Monday unearthed a racket that issued fake invoices to the tune of ₹ 106 crore, which caused a loss of ₹ 19.04 crore to the state exchequer in the form of input tax credit (ITC), an official said. The ITC is the tax that a company pays on a purchase and that it can use to reduce its tax liability when it makes a sale. The fraud came to light after the state's GST Enforcement Wing arrested Smruti Ranjan Sahoo, the proprietor of S R Enterprises, a non-existent company, and allegedly the mastermind of the racket. "Sahoo, the kingpin in collusion with others, has availed bogus input tax credit (ITC) raising fake purchase invoices in the name of 14 fake business entities located at Angul, Jajpur, Rourkela, Jagatsinghpur, Bhubaneswar and Paradeep." "He is also found to have passed bogus ITC on the strength of fake invoices to the recipients of both inside and outside the State of Od...

  Zhou Enlai, the Chinese Premier is said to have remarked when asked about the French Revolution, that it was ‘too early to tell’. This, remark perhaps apocryphal, was in 1972. This is even more true when discussing a sweeping tax reform like the Goods and Services Tax (GST) as it approaches just its fourth anniversary. However, anniversaries are opportune moments to savour the triumph, to analyse how things worked out and to map the way forward. At the outset, it must be said that GST has lived up to its promise. It has subsumed the multiplicity of taxes, reduced the cascading impact, cut down logistics and transportation costs, given the country a common economic market and provided a technology-driven tax system. Criticism has been on how GST could have been better. And the multiplicity of tax rates has been an issue which has particularly attracted a lot of critics. An ideal tax system which takes pride in simplicity should have a tax structure which is not multi-structured; a...

  In the view of the second wave of the novel coronavirus pandemic in the country, the Union government has recently announced various income tax reliefs for the common man. From more time to file Tax Deducted At Source (TDS) to income tax relief for Covid-19 treatment, a host of measures have been provided. Take a look at latest income tax related updates 1) Now taxpayers will have time till July 15 to file the TDS return for the last quarter of financial year 2020-21. 2) The last date of issuance of Form 16 has been extended till July 31, according to the recent guidelines by the income tax department. Earlier the deadline for Form 16 was July 15. 3) The last date for linking PAN and Aadhaar has been extended to September 30. If you fail to link the two documents within the deadline, you PAN will be inoperative. You may have to face a penalty of up to Rs 1,000 for not linking you PAN and Aadhaar card on time. 4) For payment without interest under Vivad se Vishwas scheme, the d...

  New Delhi: The Income Tax Department has extended the deadline for filing IT returns for the financial year 2020-21 due to the second wave of the COVID-19 pandemic, providing a sigh of relief to individual taxpayers. The decision will also reduce the compliance burden from businesses facing turbulency in the ongoing environment. According to the Income Tax Rules, the last date for individual taxpayers who file ITR-1 or ITR 4 for the previous financial year (2020-21) ended March 31 is usually July 31 every year. However, individuals can now file tax returns for income earned in the financial year 2020-21 till September 30 instead of July 31. Similarly, for companies and firms whose accounts are required to be audited, the deadline is usually October 31. But the Central Board of Direct Taxes (CBDT) has extended the deadline for filing returns for companies to November 30, 2021. Meanwhile, the government has also extended the deadlines for filing belated ITR with a penalty. The deci...

  The Palampur Taxation Bar Association yesterday lodged a protest over the glitches being faced in the newly launched income tax portal. It has appealed to the Central Government and the PMO to restore the old portal for the time being. In a press statement issued here, the association said that hundreds of income tax payers, chartered accountants and tax consultants were feeling harassed, as the new portal launched by the Union Government on June 7 had failed to take off. Union Finance Minister Nirmala Sitharaman had inaugurated it with much fanfare and it was supposed to improve taxpayers’ experience but it has instead multiplied their problems. RK Sood, president of the Bar Association, said that the glitches in the portal were giving a tough time to the taxpayers as well as chartered accountants and tax consultants. “We are unable to perform most of the tasks as the website has not been working properly since June 7, the day it was inaugurated. Even login is taking 30 to 40 mi...

  The income tax department rolled out its new ITR e-filing website — www.incometax.gov.in on 7th June 2021. This new income tax portal aims to simplify income tax return (ITR) filing and to enable a taxpayer to file ITR from one's mobile phone as well. Apart from the various other features of this new income tax website, taxpayers will be provided free ITR preparation software for ITR Form-1 and ITR Form-2. The new portal has a simplified download feature for Form 26As as well. Form 26AS is basically your tax credit statement. It contains all the information about the tax deducted against your PAN by different deductors, details of tax collected by the collectors and details of the advance tax paid by the taxpayer. It is also known as annual consolidated statement, is an important document that contains all tax-related information of the taxpayer like TDS (Tax Deduction at Source), advance tax, etc. After, the launch of new income tax website, a taxpayer can now know one's tax...

  The government on Friday extended deadlines for various income tax compliances and also exempted from tax the amount given by an employer to employees for COVID-19 treatment. Also, ex-gratia payments received from employers by family members in case of employees' death due to COVID would be exempt from income tax in fiscal 2019-20 and subsequent years. The limit for such tax-exempted payment would be Rs 10 lakh in case it is received from any other person. "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 the compliance burden of taxpayers during this difficult time, reliefs are being provided...," the Central Board of Direct Taxes (CBDT) said in a statement. The tax department said many taxpayers have received financial help from their employers and well-wishers for meeting their expenses incurred for treatment of COVID-19. "I...

  The government won’t levy any income tax on financial aid received by an individual from an employer or others for treatment of covid-19, the finance ministry said on Friday. In addition, any financial assistance received by family members of a person who has died from the viral disease will not be subject to income tax, the ministry said. The ministry also announced time extensions for various statutory obligations of taxpayers including for linking permanent account number (PAN) with Aadhaar and for employers to issue tax deducted at source statements to staff. For aid received by family members of a deceased person, the tax relief will be applicable up to ₹10 lakh if it is given by any person other than the employer of the deceased. Financial assistance offered by an employer, however, won’t have any cap on the tax exempted amount. Both the measures are applicable for FY20 and subsequent years, and the Income Tax Act will be amended to provide for this relief. The ministry exp...

  Tamil Nadu Finance Minister P. Thiaga Rajan's speech at the 43rd meeting of the GST Council on May 28 could not have been music to Centre's ears. Referring to delay in payment of GST compensation to states, unilateral decisions such as imposition of cesses (whose proceeds go to only the Centre) and the overall distrust between central and state governments, the former Wall Street veteran said "rancour in the relationship" has set in. Finance ministers of Kerala, Punjab and Maharashtra pitched in and questioned Centre's plan to raise more debt in FY22 to compensate states for revenue loss due to GST implementation despite expectations of revenue buoyancy. The "rancour" even prevented an agreement on an issue as important as taxing Covid-19 vaccines. The matter had to be referred to a group of ministers (GoM). Is the council, which has held 44 meetings since 2016 and has a record of ensuring that all its decisions except one have been unanimous, losing i...