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RBI defines Central Bank Digital Currency (CBDC) as a digital form of legal tender issued by a central bank.What is a Di...
01/11/2022

RBI defines Central Bank Digital Currency (CBDC) as a digital form of legal tender issued by a central bank.

What is a Digital Rupee? RBI to pilot launch on November 1
Simply put, it is a digital form of fiat currency, i.e. The Indian Rupee. As a result, it can be exchanged for fiat currency one for one.

India's central bank will on November 1 launch the first pilot of Digital Rupee - Wholesale segment and within a month c...
01/11/2022

India's central bank will on November 1 launch the first pilot of Digital Rupee - Wholesale segment and within a month commence the first pilot for the retail segment in select locations in closed user groups comprising customers and merchants.

The use case for this pilot (wholesale segment) is settlement of secondary market transactions in government securities. Use of e₹-W is expected to make the inter-bank market more efficient," the Reserve Bank of India said in a statement today.

Settlement in central bank money will cut transaction costs by preempting the need for settlement guarantee infrastructure or for collateral to mitigate settlement risk, it said.

Going forward, other wholesale transactions, and cross-border payments will be the focus of future pilots, based on the learnings from this pilot.

Nine banks, viz., State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC have been identified for participation in the pilot, the central bank said.

RBI said the details regarding operationalisation of e-rupee-R pilot shall be communicated in due course.

In October, the RBI had said it will soon commence pilot launch of e-rupee for specific use cases and also released a concept note on Central Bank Digital Currency (CBDC) that aims to create awareness about such currencies in general and the planned features of the Digital Rupee in particular.

CBDC will be a medium of payment, a legal tender and a safe store value for all citizens, businesses, governments and others, which can get it converted in the bank money or cash.

In the Union Budget for 2022-23, the finance minister had said the RBI would roll out a digital equivalent to the rupee in the current financial year.

In an interview in September, RBI Deputy Governor T Rabi Sankar said that the central bank will launch its digital currency as a pilot project this year. CBDC is the most efficient system for cross-border payments, he said. Though, he reiterated that RBI aims to give viable alternatives and not going for a cashless society.

Sankar had earlier said that CBDCs can "kill" whatever little case that exists for private virtual currencies like Bitcoin.

India's central bank has vehemently opposed cryptocurrencies such as Bitcoin and expressed serious concerns about cryptocurrencies. The RBI said they do not have underlying value for such instruments which are essentially speculative in nature.

Sankar had earlier said that CBDCs can "kill" whatever little case that exists for private virtual currencies like Bitcoin.

India's central bank has vehemently opposed cryptocurrencies such as Bitcoin and expressed serious concerns about cryptocurrencies. The RBI said they do not have underlying value for such instruments which are essentially speculative in nature.

Five Important Tax Deadlines A Taxpayer Needs To KnowA taxpayer must know all the due dates for filing tax returns. Read...
26/10/2022

Five Important Tax Deadlines A Taxpayer Needs To Know

A taxpayer must know all the due dates for filing tax returns. Read on to find more.

It’s important for taxpayers to know and understand all tax deadlines. If you overlook the deadline, you might have to pay a penalty, interest , or additional taxes.

Following are few important tax deadlines a taxpayer needs to be mindful of:

1. Filing Of Annual Income-Tax Returns:
Every taxpayer whose income is chargeable to tax is required to file tax returns annually.

• Due date for individuals / firms (not subject to audit)–July 31, every year.

• Due date for individuals / firms / companies (subjected to audit but not transfer pricing) –October 31.

• Due date for individuals / firms / companies (subjected to audit and transfer pricing) –November 30.

“Late filing / non-filing is subject to interest and other penal consequences. Further, it is mandatory to file tax returns to claim and carry forward losses to future years,”

2. Filing Of Tax Audit Report:

Every taxpayer, whose gross receipts /turnover, exceeds specified limits, is required to get its accounts audited by a chartered accountant.

• Due date for individuals / firms / companies (subjected to audit but not transfer pricing) –September 30

• Due date for individuals / firms / companies (subjected to audit as well as transfer pricing) –October 31.

“Failure to comply with this requirement calls for a penalty of Rs 1,50,000 or 0.5 per cent of total sales / turnover,

3. Filing Of Withholding Tax Returns (TDS and TCS)

Every taxpayer (except individual/firm not subjected to tax audit) is required to withhold tax at applicable rates on payments made by it towards services and purchase of goods subject to prescribed threshold limits. Further, tax is required to be collected in case of the sale of goods.

Apart from withholding/collection of taxes, the taxpayer is required to file withholding tax returns on a quarterly basis.

TDS Returns. TCS Returns
Q1 July 31 July 15
Q2 October 31. October 15
Q3 January 31. January 15
Q4 May 31. May 15

Non-filing of such returns attracts a penalty of Rs 200 per day till the time such default continues.

4. Filing Of SFT Returns

Persons who have entered into prescribed specified financial transactions are required to report such transactions to the income-tax authorities on or before May 31 of the financial year following the financial year in which the transaction is recorded.

“While most of the entities often miss reporting such transactions, failure to furnish such a report entails a penalty of Rs 500 per day from the expiry of the due date up to the date of notice and Rs 1,000 per day from the date when the notice expires. Further, inaccurate furnishing of such reports also attracts a penalty of Rs 50,000 and thus it is imperative to report such transactions,

For individual taxpayers filing ITR after July 31, 2022, a late fee of Rs. 5,000 will be charged. A late fee of Rs 1,000...
26/10/2022

For individual taxpayers filing ITR after July 31, 2022, a late fee of Rs. 5,000 will be charged. A late fee of Rs 1,000 will be levied if the total income of the person is less than Rs 5 lakh in a financial year.

Also, taxpayers will have to pay additional interest as penalty under Section 234A of the Income Tax Act, 1961 for filing ITR after the deadline. 1 percent of the outstanding amount will be charged as interest every month. And it is calculated from the first day after the due date to the date of filing the return.

Last date to file ITR: The last date to file Income Tax Return (ITR) for the financial year 2021-22 or assessment year 2022-23 is July 31, 2022.

Every employee and company in India has to file their tax return. The last date for filing Income Tax Return (ITR) for the financial year 2021-22 or assessment year 2022-23 is July 31, 2022. The last date of income tax returns varies from section to section. Missing the ITR deadline will attract heavy penalties like late filing fee and interest on tax liability.

1) Salaried employees and other individuals who are not required to have their accounts audited should file ITR by July 31, 2022.

2) July 31, 2022 is also the last date for filing income tax returns for Hindu undivided families not requiring audit.

3) Taxpayers who require audit of accounts should file their ITR by October 31, 2022. This rule applies to individual, partner of a company. In order to file income tax return, the accounts should be audited by Chartered Accountants and ITR should be filed along with the certificate.

4) Under Section 92E of the Income-tax Act, 1961, a person engaged in an international transaction or a specified domestic transaction shall also obtain a report from an accountant and submit it on or before November 30, 2022.

Till the assessment year 2017-18, there is no penalty for late filing of returns. But now, failure to file income tax returns by the due date will attract late filing with penalty and interest under Section 139 (4) of the Income Tax Act, 1961.

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