Rightax Advisors

01/07/2023

19/06/2023

📢 The Benefits of Filing Income Tax Returns (ITR) and Situations where it is Mandatory

Today, we want to shed light on an important topic that affects all individuals and businesses: the benefits of filing Income Tax Returns (ITR) and the situations where it is mandatory. Whether you're an employee, a self-employed professional, or a business owner, understanding the significance of filing ITR can have a profound impact on your financial well-being and compliance with tax regulations. Let's explore the advantages and circumstances that make ITR filing essential.
Benefits of Filing ITR:
1️⃣ Legal Compliance: Filing your ITR is a legal obligation imposed by the tax authorities in most countries. Complying with tax laws not only ensures that you are on the right side of the law but also helps maintain a transparent financial record.
2️⃣ Income Verification: ITR acts as concrete proof of your income and can be crucial in various situations such as applying for loans, renting properties, or even securing a visa for international travel. Having a filed tax return provides a credible document to validate your financial standing.
3️⃣ Claiming Tax Refunds: Many individuals are eligible for tax refunds if they have paid excess taxes throughout the year. Filing ITR allows you to claim these refunds, ensuring you receive the rightful amount you are owed by the tax authorities.
4️⃣ Building Financial History: Consistently filing ITR builds a strong financial history, which is important for future financial endeavors. It helps create a record of your income, investments, and assets, thereby strengthening your creditworthiness and providing a foundation for future financial planning.
5️⃣ Avoiding Penalties and Scrutiny: Failure to file ITR can lead to penalties and legal consequences. By timely filing your tax returns, you avoid unnecessary scrutiny from tax authorities and potential penalties, ensuring peace of mind and compliance with tax regulations.

24/03/2023

Secret messege that Indian Sweets carry Positive Psychology & Message. It's all about Perspective".

1. Jalebi : Your Shape doesn't matter, your nature does. No matter how messed up you look or life is, keeping a sweet tone will always help.

2. Rasgulla : No matter how much you are squeezed by circumstances, never forget who you are. Come back to your original self. Be Resilient.

3. Boondi Laddu : Every little drop of Boondi matters. Similarly little and continuous efforts can bring in Miraculous Results. Continue doing little things, Success will follow.

4. Soan papdi : Not everyone likes you, yet the maker doesn't stop to make you. Pursue your goals, irrespective of validation.

5. Gulab jamun : Your Softness is not your Weakness, it can be your strength. Softness is a quality much Appreciated, be Proud of it.

6. Besan Laddu : If you get shattered due to pressure, you can always Rebuild. It's a symbol of HOPE. No Matter what goes Wrong, we can always fix it.🌹😎✌️🙂

20/03/2023

Complete your Important Financial Task before ending of FY 2023

1️⃣ Last date to file Updated ITR for AY 2020-21 is 31.03.23.

2️⃣ Link your PAN with Aadhar no. To avoid deactivating PAN

3️⃣ GST tax composition scheme to be opted for Next FY before ending March 31.

4️⃣ NPS and Sukanya Samridhi Account to keep these investment options active, deposit any minimum amount.

5️⃣ Investment* to be made for income tax saving in current FY.

15/03/2023

Important accounting and audit trail requirements from 01.04.2023

As per Ministry of Corporate Affairs (MCA) notifications No. G.S.R. 205(E) dated 24.03.2021, G.S.R. 247(E) dated 01.04.2021 & G.S.R. 235(E) dated 31.03.2022 (Copy of Notifications attached) states that every company which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled

Comment: such trail shall include deleted transactions trail also plus as auditors we need to amend audit programs and internal control checks suitably and if any deviation found then it needs to be reported in our reporting too.

kindly check accounting software having all above features w.e.f. 1st April, 2023

10/03/2023

*E-Invoice System will not accept 4-digit HSN codes*

✅ A recent update issued by GST E-Invoice System dated March 09, 2023 stated that the E-Invoice System will not accept 4-digit HSN codes.

✅ The date for blocking e-Invoice generation having HSN code as 4-digits will be intimated Soon.

✅ As per the Notification No. 78/2020 – Central Tax dated October 15, 2020, it is mandatory for the taxpayers to mention 6-digit HSN Codes for their outward supplies having AATO more than Rs 5 Crores.

✅ After a few weeks of time , e-Invoice System will not accept 4-digit HSN codes.

✅ Necessary changes in the system of taxpayers is required to report 6-digit HSN codes to e-Invoice Portal and comply by the notification.

✅ All the HSN codes in the (https://einvoice1.gst.gov.in) portal can be Searched under–>Master–>HSN Codes and also test in the sandbox system (https://einv-apisandbox.nic.in).

✅ In case the 6 digit HSN code is not available, then a ticket has to be raised at the Help desk so that it can be included in the system.

19/01/2023

NFRA to introduce Annual Transparency Report by the Audit Firms

✅ The National Financial Reporting Authority (NFRA) has published draft requirements regarding preparation and publication of Annual Transparency Report (ATR) by auditors/audit firms.

✅ Rule 8(2) of the NFRA Rules 2018 empowers the NFRA to require an auditor to report on its governance practices and internal processes designed to promote audit quality, protect its reputation and reduce risks including risk of failure of the auditor and may take such action on the report as may be necessary.

✅ NFRA intends prescribing publication of ATR containing certain critical information about the auditor’s operational activities, management, governance and ownership structures, and policies and procedures necessary to deliver high-quality audits etc.

✅ The information contained in the ATR will be useful to the Investors, Audit Committees, Independent Directors and public at large.

✅ The ATR requirements are proposed to be implemented in a gradual manner for PIEs starting with Statutory Auditors of Top 1000 Listed Companies (by market capitalisation) with effect from the financial year ending on 31 March 2023.

✅ The ATR has to be published within three months from the end of each financial year.

✅ NFRA has also decided to seek public comments/suggestions on the contents of the ATR by 16 February 2023.

17/01/2023

❗Important Update ❗

Supreme Court to decide on the constitutional validity of Section 17(5)(d) of the CGST Act, 2017 which restricts the Input Tax Credit (ITC) on immovable property is listed on February 01, 2023.

Chief Commissioner of CGST vs. M/s Safari Retreats Pvt. Ltd.

12/01/2023

Updates

Trust imparting Vedic education beyond religious boundaries eligible for exemption. Bangalore ITAT sets aside CIT(E) order denying Assessee the registration under Section 12A as a charitable trust and consequently holding Assessee ineligible for approval under Section 80G; Holds that Assessee conducts teaching of Vedas regardless of caste, creed, religion or gender which is in the nature of education and the Assessee also conducts activities for relief of poor; [Shruthiparampara Gurukulam v. ITO [TS-07-ITAT-2023(Bang)] – Date of Judgement : 09.01.2023 (ITAT Bangalore)]

Commodity transactions in the regular course of business are not speculative transactions. Case Name : ACIT Vs Clothing Culture Ltd (ITAT Mumbai) Appeal Number : ITA No.495/Mum/2021 Courts : All ITAT ITAT Mumbai

GSTN has enabled the new functionality Letter of Undertaking (LUT) for the FY 2023-2024.

SEBI introduced the revised framework for share sales through offer for sale (OFS), paving the way for non-promoters to use this route.

Kerala High Court has held that contractual employees being terminated from service for 'unsatisfactory performance' have to be first given a notice regarding the same.

After DigiLocker for individuals, NFRA is looking to implement a similar mechanism for auditors to safely keep their audit files in a tamper-proof way.

11/01/2023

Updates:

1. CBDT has abolished the limit of Rs. 5,000 applicable on interest income to report in the Statement of Financial Transactions (SFT) by the reporting entities. The board has modified Notification 2 of 2021, dated 20-04-2021 that provided such a limit.

2. Income tax department has extended the time limit for a number of compliances related to long-term capital gains tax exemption, till March 31, 2023.

3. Madras High Court, in case of "Easwaran Brothers India Private Limited Vs. AC (ST) (FAC)" has held that dealers cannot be compelled to carry forward Input Tax Credit (ITC) from pre-GST regime to the GST regime if the dealer chooses to avail refund instead. So, a dealer cannot be compelled to opt for one of the two i.e., refund or carry forward the ITC to GST regime. Under the GST law, it is an option given to the dealers.

4. SEBI, in a circular clarified that all payment mechanisms provided by banks and payment aggregators authorised by the RBI to be used for settlement of trades executed on the Request for Quote or RFQ platform.

5. MCA vide General Circular No. 01/2023 dated January 09, 2023 waived the payment of an additional late fee for the filing of 45 forms that are migrating to the V3 portal.

6. MCA is in the process of introducing certain company e-Forms in MCA21 Version 3.0 and thus these e-Forms will not be available in MCA21 Version-2 from January 07, 2023 to January 22, 2023.

7. Therefore, keeping in view the fact above, it has been decided by the Competent Authority to allow additional time of 15 days, without levying additional fees, to the stakeholders, in cases where the due dates for filing of these 45 e-Forms fall during the period between January 07, 2023 and January 22, 2023.

10/01/2023

E-Waste Management Rules, 2022 and the Auditors:

E-Waste Management Rules, 2022 have been notified which are made to be effective from 1 April 2023.

Say that your entity is neither a manufacturer, nor a producer of electrical equipments but still these rules are going to be a matter of audit consideration for the statutory auditors on account of following reasons:

1. They have to check whether the entity falls in the definition of bulk consumer. As per the Rules, bulk consumer' means any entity which has used at least one thousand units of electrical and electronic equipment listed in Schedule I, at any point of time in the particular Financial Year and includes e-retailer.

2. For this purpose, the challenge that can be faced is about the availability, completeness, accuracy and reliability of records of such electrical and electronic equipment that are forming part of fixed assets and consumables

05/01/2023

Statutory and Tax Compliance Calendar for January 2023

1. Income Tax TDS/TCS Liability Deposit Dec-22, 7-Jan-23 Due date of depositing TDS/TCS liabilities under the Income Tax Act, 1961 for the previous month.

2. Income Tax TDS Liability Deposit Oct-Dec, 2022, 7-Jan-23 Due date for deposit of TDS for the period October 2022 to December 2022 when the Assessing Officer has permitted quarterly deposit of TDS under section 192, section 194A, section 194D or section 194H.

3. GST GSTR-7- TDS return under GST Dec-22, 10-Jan-23 GSTR 7, is a return to be filed by the person who is required to deduct TDS (Tax deducted at source) under GST.

4. GST GSTR-8- TCS return under GST Dec-22,10-Jan-23 GSTR-8, is a return to be filed by the e-commerce operators who are required to deduct TCS (Tax collected at source) under GST.

5. GST GSTR-1 Dec-22 11-Jan-23

" *GST Filing of returns* by registered person with aggregate turnover exceeding INR 5 Crores during the preceding year.
Registered person, with aggregate turnover of less than INR 5 Crores during the preceding year, opted for monthly filing of return under QRMP"

6. *GST* GSTR-1-QRMP Oct-Dec, 2022, 13-Jan-23 GSTR-1, of registered person with turnover less than INR 5 Crores during the preceding year and who has opted for quarterly filing of return under QRMP.

7. *GST* GSTR -6 Dec-22, 13-Jan-23 Due Date for filing return by Input Service Distributors.

8. *Income Tax TDS* Certificate Nov-22, 14-Jan-23 Due date for issue of the TDS Certificate for tax deducted under section 194-IA, 194-IB, and 194M in the month of November 2022.

9. *Income Tax* Form 24G Dec-22, 15-Jan-23 Due date for furnishing of form 24G by an office of the government where TDS/TCS for the month of December 2022 has been paid without the production of a challan.

10. *Income Tax* TCS Return Oct-Dec, 2022,15-Jan-23 Quarterly statement of TCS for the quarter ending December 31, 2022.

11. *Income Tax* Form No. 15CC Oct-Dec, 2022, 15-Jan-23 Quarterly statement in respect of foreign remittances (to be furnished by authorized dealers) in Form No. 15CC for the quarter ending December 2022.

12. *Income Tax* Form No. 15G/H Oct-Dec, 2022, 15-Jan-23 Due date for furnishing of Form 15G/15H declarations received during the quarter ending December 2022.

13. *Labour Law* Provident Fund / ESI Dec-22, 15-Jan-23 Due Date for payment of Provident fund and ESI contribution for the previous month.

14. *GST* GST CMP-08 Oct-Dec, 2022, 18-Jan-23 Form GST CMP-08 is used to declare the details or summary of self-assessed tax payable by taxpayers who have opted for composition levy.

15. *GST* GSTR - 3B Dec-22, 20-Jan-23

" *GST Filing of returns* by registered person with aggregate turnover exceeding INR 5 Crores during the preceding year.
Registered person, with aggregate turnover of less than INR 5 Crores during the preceding year, opted for monthly filing of return under QRMP."

16. *GST* GSTR -5 Dec-22, 20-Jan-23 GSTR-5 is to be filed by a Non-Resident Taxable Person for the previous month.

17. *GST* GSTR -5A Dec-22, 20-Jan-23 GSTR-5A is to be filed by OIDAR Service Providers for the previous month.

18. *GST* GSTR-3B Oct-Dec, 2022 22-Jan-23 "GSTR-3B of registered persons with turnover less than INR 5 Crores during the preceding year and who have opted for quarterly filing of return under QRMP. *Note 1

19. GST GSTR-3B Oct-Dec, 2022 24-Jan-23 "GSTR-3B of registered person with turnover less than INR 5 Crores during the preceding year and who has opted for quarterly filing of return under QRMP. **Note 2

20. Income Tax TCS Certificate Oct-Dec, 2022, 30-Jan-23 Quarterly TCS certificate in respect of the quarter ending December 31, 2022.

21. Income Tax TDS Challan cm Statement Dec-22, 30-Jan-23 Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA, 194-IB, 194-M, in the month of December 2022.

22. Income Tax TDS Return Oct-Dec, 2022, 31-Jan-23 Quarterly statement of TDS for the quarter ending December 31, 2022.

23. Income Tax Quarterly return of non-deduction at source by a banking company Oct-Dec, 2022, 31-Jan-23 Quarterly return of non-deduction at source by a banking company from interest on time deposit in respect of the quarter ending December 31, 2022.

24. Income Tax Form No. 3CEAC 31-Jan-23 Intimation under section 286(1) in Form No. 3CEAC, by a resident constituent entity of an international group whose parent is a non-resident