ABNP & Associates

05/08/2022

TAX PLANNING FOR 2022-23

10 Tax planning individuals should do now for FY 2022-23 to avoid paying huge tax & interest at the time of Filing ITR.

1) Make rent agreement for HRA claiming when giving rent to parents / spouse / relatives etc .
Remember If you miss to make the rent agreement you cannot claim benefit !

2) Keeping hard copy and soft copy of all medical expenses bill for parents above 60 not having medical policy to claim in section 80D Rs 50k.

3) Save all donations receipt to claim benefit in 80G and 80GGC as the same does not reflect in AIS & TIS

4) Opening an NPS account to claim Rs 50k benefit as deduction from income.

5) Start an SIP in Equity Tax saver MF or PPF till March 2023 to cover deduction in 80C . Balance between two as per age and risk appetite.

For Insurance buy only Term Plan and review cover, go for top up cover in case of increase in income or addition in family.

6) If you are in 30% bracket, Gift any assets generating income to family member without clubbing provision attraction to avoid 30% tax on it.

7) Open an HUF account for family and use for better tax planning and investment.

8) Do keep track of turnover in business or profession to check if GST is applicable during the year, take timely registration and pay tax to avoid interest and penalty.

9) If switching job, ensure your new employer knows and consider previous earnings while calculating TDS or alternatively pay advance tax

Also if having other income, pay advance tax during year.

10) Review your stock portfolio, if there are long terms capital gains of > 1 lac, check if you have any long term losses and book it before 31 March to take benefit of setoff of losses.

Remember Notional losses do not qualify for setoff against actual gains.

13/07/2022

*194Q and 206C(1H) TDS vs TCS*
If a transaction is both within the purview of section 194-Q of the Act as well as sub-section (1H) of section 206C of the Act, the tax is required to be deducted under section 194-Q of the Act. However, practically it is seen that in many cases, an undesirable practice is adopted by the seller collecting TCS by charging TCS in the Invoice itself . In such a situation , a concern is created among the stakeholders and the Tax Auditor about the applicability of TDS u/s 194Q on the transactions on which, if, for any reason, tax has been collected by the seller under sub-section (1H) of section 206C of the Act, before the buyer could deduct tax under section 194-Q of the Act on the same transaction.
The CBDT vide Circular 13 dated 30th June 2021, in its last Para has clarified that "However, if, for any reason, tax has been collected by the seller under sub-section (1H) of section 206C of the Act, before the buyer could deduct tax under section 194-Q of the Act on the same transaction, such transaction would not be subjected to tax deduction again by the buyer. This concession is provided to remove difficulty, since tax rate of deduction and collection are same in section 194Q and subsection (1H) of section 206C of the Act."

28/06/2022

The Central Board of Direct Taxes ("CBDT") has enabled the filing of ITR-U on the Income Tax e-filing portal for the Assessment Year ("AY") 2020-21 and AY 2021-22 using Excel utility for ITR-1 and ITR-4.

The Income Tax E-filing Portal, on Tuesday dated June 27, 2022 has issued an update that says "E-filing of Updated ITR u/s 139(8A) has been enabled for AY 2020-21 and AY 2021-22 using Excel utility for ITR 1 and 4. Refer details in News section. Please click Downloads | Income Tax Department to access and download the same for clicking respective AY folder. Once Updated ITR is prepared, you can upload the XML/JSON by logging into Income-tax website."

Utility for Updated Return ITR-U:

ITR 1 (AY 2020-21) https://www.incometax.gov.in/iec/foportal/sites/default/files/2022-06/ITR1_AY%202020-21_PR3.3.zip
ITR 4 (AY 2020-21) https://www.incometax.gov.in/iec/foportal/sites/default/files/2022-06/ITR4_AY%202020-21_PR4.1.zip
ITR 1 (AY 2021-22) https://www.incometax.gov.in/iec/foportal/sites/default/files/2022-06/ITR1_AY%202021-22_V1.0.zip
ITR 4 (AY 2021-22) https://www.incometax.gov.in/iec/foportal/sites/default/files/2022-06/ITR4_AY%202021-22_V1.0.zip
To upload ITR-U after login go to e-File > Income Tax Returns > File Income Tax Return then select Assessment Year

For AY 2020-21 Only .xml files are allowed.

For AY 2021-22 Only .json files are allowed.

24/06/2022

*Humble request to ensure ROC Forms filled are error free in all respect: 🙏🙏

*MCA SCRUNITY of Corporate filing*

MCA is set to launch _random electronic scrutiny_of corporate filing later this year. There will be stratified random sampling of the returns. The computer driven scrutiny will be similar to the one that will be taken by the income tax department that takes few returns. Scrutiny work will begin earlier, version 3 of MCA21 with a system of RED Flags. Red flags system will include
Frequent resignation by Auditors or directors
Companies with Low paid up capital but with high turnover, High related party transactions.

*Humble request to ensure ROC Forms filled are error free in all respect* 🙏🙏

Regards,

23/06/2022

*Updates*
1) RBI issued Master Direction for Credit Card and Debit Card Issuance and Conduct Directions, 2022 (“Master Direction”) dated April 21, 2022, wherein the Reserve Bank had prescribed a timeline of July 01, 2022, for implementation of the provisions of the Master Direction.
2) IT Department had clarified that the rate of TDS on Virtual Digital Assets continues to be 1 per cent, debunking earlier media reports that rate of TDS on Virtual Digital Assets(VDA) has been reduced to 0.1%.
3) CBDT issues Circular No. 13/2022 dt 22.06.22 containing guidelines to remove difficulties wrt Section 194S, which comes into effect from 01.07.22. Section 194S mandates tax deduction @ 1% on transfer of Virtual Digital Asset by payer.
4) MCA Last date of filing of DPT-3 is 30.06.2022.
5) CBDT vide Circular No. 12/2022 dated 16.06.2022, issues guidelines for removing difficulties on implementation of Section 194R on guidelines on deduction of tax at source.
6) ITR 5 is also now available for efiling. Excel offline Utility for preparing and filing ITR 5 is released. Please click Downloads | Income Tax Department to access and download the same. Once prepared, you can upload the JSON at the Income-tax website.
7) Net direct tax collections, which include income tax and corporate tax, reached Rs 2.58 lakh crore as of June 14 in financial year 2022-23 against Rs 1.86 lakh crore YoY, reigniting hopes of sustained economic recovery, despite inflationary concerns and the disruption caused by geopolitical tensions.
8) CBIC has issued a detailed procedure for sanction, post-audit, and review of refund claims under Goods and Services tax, in the light of the receipt of reports of different practices being followed by the officers, creating confusion for taxpayers.

17/05/2022

30/04/2022

The timeline to update UDIN is extended till 31st May 2022 to give more time to CAs to correctly verify and upload UDINs.

30/04/2022

*Updates & UDIN Issue*
1) *UDIN Extension:* CBDT has extended the timeline to update UDIN on Income Tax Portal to 31st May 2022

2) *UDIN Resolutions by ICAI:* Please *retry today* to update UDIN in income tax portal. If problem still error persist, then, *Complain to UDIN Directorate, ICAI:* If problem persists, you should also raise a complain on UDIN portal :
https://udin.icai.org/complaints . Email id: [email protected], ICAI UDIN Help desk cell : 01130110480
3) *CBDT Notifies Form and Manner for filing Updated Return* in Notification No. 48/2022 dated 29-04-2022. *Updated Return* can be filed from the *assessment year 2020-21* onwards.
Return shall be filed in form no. *ITR-U* alongwith applicable IT form from ITR-1 to ITR-7.
Return Can be updated on account of Below:
- Return Previously not filed
- Income not reported correctly
- wrong heads of income chosen
- Reduction of Carried forward Loss
- Reduction of Unabsorbed Depreciation
- Reduction of Tax Credit
- Wrong rate of tax
- others

This UDIN System has been developed by ICAI to facilitate its members for verification and certification of the documents and for securing documents and authenticity thereof by Regulators.

29/04/2022

Update
AR bhupendra shah
Assessee filed return of income Alongwith tax audit report. CPC (AO) while processing return u/s 143(1)(a) based on inputs in tax audit report made disallowance towards delay in payment of PF. CIT appeals dismissed the appeal. In appeal the Mumbai held as under :
1. Material difference in scheme of processing of return u/s 143(1)(a) than earlier
2. Law as of today under sec 143(1)(a) , disallowance can be of “ an incorrect claim , if such incorrect claim is apparent from any info in the return “. Incorrect claim is further defined under the explanation
3. First proviso to sec 143(1) mandates that no such adjustment shall be made unless an intimation is given to the assessee of such adjustments
4. Second proviso says that the response recieved from assessee shall be considered before making any adjustments and such disposal of objections is a quasi judicial function
5. Thus the scope of adjustment under sec 143(1)(a) is much broader and the call that the CPC has to take is to whether to go ahead with the adjustment or not and the AO has to give reasons
6. Disposal of objections cannot be an empty formality
7. AO used a standard reason “ as there is no response/the response given is not acceptable “ and has not struck off the portion inapplicable
8. Casually assigned reasons cannot be said to be a sufficient justification for a quasi judicial decision as 143(1) order is now an appealable order and consideration of objections is an integral part of the process of finalising intimation u/s 143(1)
9. If the CIT appeals has no clue as to what reasons CPC made disallowance it would have difficulty to sit in judgment and decide Thus a quasi judicial order without giving reasons for arriving at such decision is Contrary to the way the functioning of quasi judicial authorities is envisaged and thus not valid and legal
10. On merits can the observation in a tax audit report be justification enough to make any disallowance as they are mere opinions and at best flag a particular issue
11. It is for the AO to see the flag , Consider the law at hand and then decide to make the disallowance or not If the opinion of the auditor is contradictory to the law then no disallowance can be made and hence the provision has to be read down On merits on this issue the BOM HC was in favour and the CPC should have applied the law and not relied upon the auditor opinion to make the disallowance
Kalpesh Synthetics P Ltd
Order dt 27/4/22

26/04/2022

CBDT has notified additional conditions u/s 139(1) for compulsory return filing under following situations:

👉🏿 Turnover from business exceeds Rs 60 lacs

👉🏿 Gross receipts from Profession exceeds Rs 10 lacs

👉🏿 TDS/TCS exceeds Rs 25000

👉🏿 Deposit in Savings bank account is Rs 50 lacs

Notification G.S.R. 307(E). 21.04.2022

04/04/2022

The last date for updating UDINs for all the IT forms at the e-filing portal is 30th April, 2022

when Updation start at e-filing portal

02/04/2022

*Audit Trail Extended*

The applicability of using accounting software having Audit Trail has been further deferred and now shall be applicable from financial year commencing on or after the 1st day of April, 2023