CA. Praveen Sharma GST Mitra

  The last date for filing Income Tax Return (ITR) for the financial year 2020-21 or Assessment Year (AY) 2021-22 was extended multiple times during the year owing to problems faced by assessees with Income Tax Department’s new e-filing portal. However, it has been confirmed that no more extensions would be given and therefore all taxpayers need to complete their ITR filings by December 31, 2021. Even with just one day left to the deadline, several taxpayers continue to file their returns. Over 5 crore ITRs have been filed till Wednesday, December 29, 2021. Those cutting it too close to the deadline might be at risk, say experts. Waiting till the last date for filing ITR for AY 22 can impact your financial health. It is to be noted that the deadline for companies that have to get their accounts audited, has been extended till February 15, 2022. December 31, 2021 deadline applies to individual taxpayers who do not have to get their accounts audited. It is also important to note the ...

  Exemption from mandatory goods and services tax (GST) registration that is currently available for small enterprises with annual revenue of up to ₹40 lakh may soon extend to their sales on online platforms as well, two people aware of the matter said. Currently, the turnover threshold for GST registration is ₹40 lakh for goods and ₹20 lakh for services. However, registration is mandatory for all merchants selling on online platforms, regardless of revenue. According to the people cited above, who requested anonymity, the budget may provide a direction in this regard, even though the GST Council decides on indirect tax matters. The move is expected to help micro, small and medium enterprises (MSMEs), self-employed individuals, self-help groups, and artisans sell their products online without bearing compliance costs of GST registration. Under GST rules, even if there are no transactions, GST returns must be filed from the month of registration, failing which a penalty is payable. ...

  The government on Wednesday extended till February 28 the deadline for businesses to file GST annual returns for 2020-21 fiscal ended March 2021. "The due date for furnishing annual return in FORM GSTR-9 & self-certified reconciliation statement in FORM GSTR-9C for the financial year 2020-21 has been extended from 31.12.2021 to 28.02.2022," the Central Board of Indirect Taxes & Customs (CBIC) tweeted. GSTR 9 is an annual return to be filed yearly by taxpayers registered under the Goods and Services Tax (GST). It consists of details regarding the outward and inward supplies made or received under different tax heads. GSTR-9C is a statement of reconciliation between GSTR-9 and the audited annual financial statement. Furnishing of the annual return is mandatory only for taxpayers with aggregate annual turnover above Rs 2 crore while reconciliation statement is to be furnished only by the registered persons having aggregate turnover above Rs. 5 crore. Source: https://ww...

  With the Covid pandemic impacting states’ revenues, they have urged the Central government to consider increasing its share in Centrally-sponsored schemes and an extension of compensation for another five years under the Goods and Services Tax (GST) regime . In their pre-Budget meeting with Union Finance Minister Nirmala Sitharaman on Thursday, some states urged the Centre to look into direct cash transfers for supporting economic recovery. Rajasthan Education Minister Subhash Garg said extension of compensation cess window under GST till 2026-27 is a valid demand of states and the Centre should consider it. “Our most significant demand is that the Centre’s share in Centrally-sponsored schemes has gradually reduced and states’ share has increased. Earlier share would be 90-10 and now it is 50-50 or 60-40, our request is that it should go back to 90-10,” Garg said. Under GST, states were guaranteed compensation at the compounded rate of 14 per cent from the base year 2015-16 for ...

  The Income Tax department has brought in changes to the existing faceless appeal scheme, easing the process for taxpayers wanting a personal hearing through video conference while appealing against a tax demand by the department. The Central Board of Direct Taxes (CBDT) on December 28, notified the ‘Faceless Appeal Scheme, 2021’ and said that the Commissioner (Appeals) shall allow the request for personal hearing via video conference and communicate the date and time of hearing to the appellant via the National Faceless Appeal Centre. “Such a 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,” said the ‘Faceless Appeal Scheme, 2021’. However, a person would not be permitted to appear before the Income-Tax authority either personally or through an authorised representative in connection with any proceedings...

  The government has extended the deadline for businesses to file Goods and Services Tax (GST) annual returns for FY 2020-21. The due dates to file GSTR 9 & 9C for FY20-21 has been extended to February 28, 2022 from December 31, 2021, announced the Central Board of Indirect Taxes & Customs (CBIC) on Wednesday. The due date for furnishing annual return in FORM GSTR-9 & self-certified reconciliation statement in FORM GSTR-9C for the financial year 2020-21 has been extended from 31.12.2021 to 28.02.2022," it said in a tweet. GSTR 9 is an annual return to be filed yearly by taxpayers registered under the Goods and Services Tax (GST). It consists of details regarding the outward and inward supplies made or received under different tax heads. GSTR-9C is a statement of reconciliation between GSTR-9 and the audited annual financial statement. On the other hand, the Goods and Services Tax (GST) Council will meet on Friday on the eve of several key GST related amendments schedu...

  The crucial Goods and Services Tax (GST) changes kicking in from January 1 are first, 5 percent GST charge will now shift from restaurant to e-commerce food delivery provider. Implying that players like Swiggy, Zomato, Uber Eats, etc. will charge 5 percent from the consumer instead of restaurants who were charging this earlier and were in-built in your food bill. So now, from January 1, there will be two levies, 5 percent GST on the food bill and 18 percent GST on other charges including delivery charge, etc. But, how will this make food orders expensive? Firstly, there are many restaurants that are unregistered because they are below the threshold of Rs 40 lakh turnover per annum (i.e. Rs 3 lakh per month or with Rs 10,000 per day sales). For example, Dhabbas, hawkers, small kiosk, stalls, etc, so deliveries made of food supplied by them will also get taxed, which was earlier exempt. Secondly, many restaurants are under a composition scheme, where they do not charge 5 percent GS...

  With just three days left for the deadline of income tax returns (ITR) filing for financial year 2020-21 (assessment year 2021-22), around 46.4 million tax returns have been filed, a top government official said. This comes even as there were many complaints on social media by filers regarding glitches in the income tax portal, which is being maintained by Infosys. “We have had 129,000 filings just in the last hour (till 8 pm) and will cross 1,600,000 filings on Monday. There have been more than 46.4 million returns filed so far for AY22,” the official told Business Standard. A second official said the Central Board of Direct Taxes (CBDT) and Infosys were constantly monitoring the portal as well as the complaints on social media. The official said that in many cases, issues were occurring not because of any glitches but because the filers had entered incorrect details or wrong one-time passwords (OTPs). On Monday, ‘#Extend_Due_Date_Immediately’ was trending on social media platfo...

  Taxpayers who have not e-verified their income tax returns (ITRs) for 2019-20 fiscal can complete the verification process by February 28, 2022, as the Income Tax department has given a one-time relaxation to assessees. As per law, an income tax return (ITR), filed electronically without a digital signature, has to be verified electronically through Aadhaar OTP, or net-banking, or code sent through demat account, pre-validated bank account and ATM within 120 days of filing the return. Alternatively, taxpayers can send a physical copy of the ITR filed to the Centralised Processing Centre (CPC) office in Bengaluru. If the verification process, which is done through ITR-V form, is not complete, then it is considered that the return has not been filed. The Central Board of Direct Taxes (CBDT) in a circular dated December 28, said a large number of electronically filed ITRs for the Assessment Year 2020-21, still remain pending with the Income Tax department for want of receipt of a va...

  Searches by the Income-Tax Department, on four groups in different parts of the country, has led to the detection of unaccounted income exceeding ₹500 crore. In the first case, the searches were conducted on more than 25 premises linked to two groups of Nandurbar and Dhule in Maharashtra on December 22. They are in the civil construction and land development business. The agency found that one group resorted to large-scale suppression of taxable income by inflating expenses, primarily by claiming non-genuine sub-contract expenses and unverifiable old sundry creditors. The sub-contracts in question were shown to have been awarded to family members and their employees who, in fact, did not render any services. According to the agency, the group has evaded income to the extent of ₹150 crore on account of the malpractices. A substantial part of the second group’s transactions were in unaccounted cash. “Incriminating documents evidencing receipt of ‘on-money’ on land transactions and ...

  For the year 2020-21, the state has collected Goods and Services Tax (GST) worth Rs 69,948.56 crore, lesser than the Rs 82601.59 crore collected the previous year, registering a decrease of 15 per cent. This is as per the state finance accounts report (2020-21) tabled in Legislative Assembly on Tuesday. The state received Rs 10,894.03 crore as its share under the Central GST tax, the report said. It added that the total receipts under GST was Rs 80842.59 crore. The state received compensation worth Rs 17423.37 crore on account of loss of revenue arising out of implementation of GST during 2020-21. The report recorded the outstanding debt of Maharashtra for 2020-21 at Rs 428481.78 crore, amounting to 16 per cent of the state GSDP. The permissible limit for outstanding debt cannot exceed 25 per cent of the GSDP. Currently, state GSDP for 2020-21 works out to be Rs 2661629 crore. The report pointed that the state has a revenue deficit of Rs 41,141.85 crore in 2020-21 — 1.5 5 per cen...

  The GST regime will see a host of tax rate and procedural changes coming into effect from January 1, including liability on e-commerce operators to pay tax on services provided through them by way of passenger transport or restaurant services. 12% on footwear, readymade garments All footwear, irrespective of prices, will attract GST at 12 per cent while all textile products, except cotton, including readymade garments will have 12 per cent GST. E-commerce platform passenger services While the passenger transport services provided by auto rickshaw drivers through offline/ manual mode would continue to be exempt, such services when provided through any e-commerce platform would become taxable effective January 1, 2022, at 5 per cent rate. The procedural changes that would come into effect include e-commerce operators, such as Swiggy and Zomato, being made liable to collect and deposit GST with the government on restaurant services supplied through them from January 1. They would al...

  इनकम टैक्स डिपार्टमेंट (Income Tax) इन दिनों कैश ट्रांजैक्शन को लेकर काफी सतर्क हो गया है. पिछले कुछ सालों में आयकर विभाग ने बैंक, म्यूचुअल फंड हाउस, ब्रोकर प्लेटफॉर्म आदि जैसे विभिन्न निवेश प्लेटफार्मों पर आम जनता के लिए नकद लेनदेन के नियमों को कड़ा कर दिया है. बता दें कि बहुत सारी ऐसी ट्रांजैक्शन होती हैं, जिन पर इनकम टैक्स की नजर रहती है. बैंक, म्यूचुअल फंड, ब्रोकरेज हाउस और प्रॉपर्टी रजिस्ट्रार के पास अगर आप बड़े कैश ट्रांजेक्शन करते हैं, तो उन्हें आयकर विभाग की इसकी सूचना देनी होती है. आइए जानते हैं ऐसी ही 5 ट्रांजेक्शन के बारे में, जो आपको दिक्कत में डाल सकती हैं. 1 बैंक सावधि जमा (FD): एक साल में अगर आप एक बार या एक से अधिक बार में एफडी में 10 लाख रुपये या उससे अधिक जमा करते हैं तो आयकर विभाग आपसे पैसों से स्रोत के बारे में पूछ सकता है. ऐसे में अगर मुमकिन हो तो एफडी में अधिकतर पैसे ऑनलाइन माध्यम से या फिर चेक के जरिए जमा करें.\ 2 बैंक बचत खाता जमा: अगर कोई शख्स एक वित्त वर्ष में अपने एक खाते या एक से अधिक खातों में 10 लाख रुपये या उससे अधिक की रकम कैश में जमा करता है तो आय...

  Over 4.43 crore income tax returns (ITRs) for financial year 2020-21 have been filed till December 25 with no indication of a further extension in the deadline (December 31) despite the fact that the number so far is over 1.5 crore less than that for the last year. The Income Tax Department said 11.68 lakh returns were filed on Christmas. Of the total, 2.41 crore ITR-1 returns were filed for fiscal 2020-21. ITR-1 form is filed by resident individuals having annual income below Rs 50 lakh and is considered a marker of middle class. The filings so far are 58 lakh less than 2.99 crore ITR-1 returns filed for the previous fiscal. The figure was 3.11 crore for the 2018-2019 fiscal. ITR-4 filings have been showing an increase. Last year, over 1.49 crore ITR-4 returns were filed. This year, 1.09 crore ITR-4 returns have been filed so far. Source; https://www.tribuneindia.com/news/nation/1-5-crore-fewer-income-tax-returns-filed-so-far-354908 Download our App to get knowledge updates: ht...

  Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has begun collecting pending GST of Rs 34 crore from one crore of its consumers across the State. TANGEDO imposed 18 per cent GST (9 per cent CGST + 9 per cent SGST) on 17 categories of its services on July 1, 2017. Owing to software limitations, however, it has been collecting the tax only from five categories since 2017, according to sources. Recently, the Public Sector Undertaking (PSU) upgraded its software to include the remaining 12 and sent the GST bills pending under these categories to consumers. Notably, most consumers and even officials are unaware of this recent update. M Ravichandran, a Medavakkam resident, said he received an electricity bill of Rs 550, including a GST of Rs 90 this month. When he approached the electricity office concerned, the officials could not answer his queries properly as they themselves were unaware of the update; Ravichandran has, nonetheless, paid the bill. A senior official t...

  The South India Hosiery Manufacturers’ Association has appealed to Union Finance Minister Nirmala Sitharaman to retain 5 % GST on garments that are priced less than ₹1,000 or at least for garments of less than ₹500 value. In a memorandum submitted to Finance Minister in Chennai on Friday, the Association president A.C. Eswaran said the GST will be up from 5 % to 12 % from January 1 for garments, irrespective of the value of the product. Basic hosiery garments are purchased by all sections of society as these are essential for every one. The notification on hike in GST is a blow to the poor, he said. A delegation from the Indian Chamber of Commerce and Industry, Coimbatore, Coimbatore District Small Industries Association, Southern India Engineering Manufacturers Association, and Tanstia submitted a memorandum to the Finance Minister seeking withdrawal of Section 194 Q of the Income Tax Act 1961 and withdrawal of section 206 AB of Income Tax Act. The delegates also sought extensio...

  Taxpayers are required to report some of the high-value transactions in their income tax return (ITR), failing which they may receive a tax notice from the Income Tax Department. Worth mentioning here is that the I-T Department receives information from multiple government agencies on high-value transactions conducted by individuals. So if you do not report those transactions in the ITR the I-T Department may send you a notice seeking an explanation on the same. Here are the high-value transactions which you taxpayers should report in their ITR: Making fixed deposit above Rs 10 lakh with cash If you are making a fixed deposit of more than Rs 10 lakh in cash then it must be reported in the ITR. The Central Board of Direct Taxes (CBDT) has asked banks to report such individual deposits if they exceed Rs 10 lakh in value. Making cash deposit of more than Rs 10 lakh in savings bank accounts If a savings account holder deposits more than Rs 10 lakh in his account during a financial ye...

  The government is working to bring changes in the GST Act and other public platforms so that companies can utilise data to grow big in size and scale, Jayant Sinha, Chairperson, Parliament Standing Committee on Finance, said on Thursday. "Public platforms such as UPI and Aadhaar are very important platforms. Even then, for us to leapfrog, we have to do more in terms of public platforms," Sinha said while speaking at the Assocham e-summit on 'Non-Banking Finance Companies & Infrastructure Financing: Transforming the Financial Lending Landscape'. When the Factoring Bill came to the Standing Committee on Finance, the government was opening up factoring to more non-banking financial companies and enabling more NBFCs to participate in that. "But even as we were doing that we were not addressing some important platform and data related issues. That is why we suggested that anything that is on GST as an invoice should automatically be gone to TReDS as well. Then i...