Yrkdaj and Associates LLP

14/11/2020

Wishing u a Happy Diwali

24/10/2020

*Revised due dates Updates*

Income tax return for FY 2019-20 (no tax audit) -
*31 December 2020*

Income tax return for FY 2019-20 (TP, tax audit and partners of tax audit firms) -
*31 January 2020*

Various audit reports (including tax audit, transfer pricing) -
*31 December 2020*

Income tax return for FY 2018-19 -
*30 November 2020*

GSTR9/9C for FY FY 2018-19 -
*31 December 2020*

14/10/2020

13/08/2020

"Dear Trustees

Very IMP update for Charitable Trusts and Exempt Institution registered under section 80G, 12A or section 12AA : New - Fresh Registration Required : Last Date 31.12.2020

All Charitable trusts and exempt institution which are already registered under section 80G, 12A or section 12AA of Income Tax Act, 1961 will now be required to obtain FRESH REGISTRATION by December 31, 2020. Provisions of
registration under section 80G, 12AA or section 12A will be redundant from 31st December, 2020 and a new section 12AB will
come into force with effect from 01st January 2021. All the existing registered trusts under the erstwhile section 80G, 12A or
section 12AA would move to new provision section 12AB.

The new section 12AB proposes to change the registration process by prescribing the time frame for processing the
application and validity of such a registration certificate so granted under the new section 12AB.

An order granting registration or approval shall be passed within 3 months of the application. Such registration or
approval shall be valid for 5 years.

Similarly, charitable trusts and exempt institutions which already have Section 80G certificate will now be required to
reapply for registration or approval by December 31, 2020.

The registration shall be valid for 5 years.

13/05/2020

*Stimulus of 20 Lakh Cr Bifurcation:-

1. *MSME Step-1*-Collateral Free Automatic Loan for MSME. Those MSME having Loan upto 25cr and turnover upto 100cr will be covered in this scheme. 100% Central Govt Guaranteed. Will help 40 Lac Units. This loan will be for 4 Yrs with a Moratorium of 12 Months. 45 Lakh MSME Units will get benefit from It. Total 3 Lakh Cr Loan will be Given under this scheme.

2. *MSME Step-2*- 20000Cr will be infused as Subordinate Debt for stressed MSME. 2 Lakh SME will get benefit from this. Govt will provide 4000 cr to CGTSME Trust.

3. *MSME Step-3*- Their is a Fund of Fund to be created. Rs 50000cr will be infused as equity to standard MSME. Will help them to expand their capacities.

4. *MSME Step-4*- Definition of MSME changed. Investment Limit which defines a SME is changed. Now Turnover criteria is also introduced. Different between manufacturing and service SME is removed. Micro Units- Investment limit increased to 1Cr from 20Lakh. And Turnover can be upto 5Cr. Other changes are also done. For Medium Enterprise the limit increased to 10 Cr Investment and turnover 50Cr. 20Cr and 100Cr

5. *MSME Step-5*- Tenders upto 200Cr relating to Govt procurement will not be Global Tenders any more. mSME will get benefit out of it

6. *MSME Step-6*- E-Market Linkage will be Provided to all MSME due to less possibility of Trade fares. All Central Govt outstanding will be cleared within 45 Days by Govt Help of all MSME.

7. *EPF Step-1*- EPF Payment was paid by Govt for Mar, April and May now Extended by another 3 Months. 12%+12% will be paid by Govt of India.

8. *EPF Step-2*- Contribution reduced from 12% to 10% for those organisation having more than 100 employee is done now.

9. *NBFC, MFI, HFC-Step-1*- Special 30000cr Liquidity window will be given. Govt will buy debt papers of these institutions even if investment grade. These will be fully guaranteed by govt of India.

10. *NBFC Step-2*- To Give 45000cr Liquidity will be given to NBFC. First 20% Loss will be born by Govt of India. Even unrated papers will be get money under this scheme.

11. *Discom Steps*- Discom not able to pay the power generation Companies. 90000cr Special fund created to pay all outstanding of Power Generation Companies. PFC and REC will give this money

12. *Contractors Step* 6 Month extension will be given to all Govt contractors of Railways, Roads, Other departments. Govt Agencies will partially release Bank Guarantees to the extent of work completed. A Big Step.

13. *Realestate Step*- Covid19 can be treated as act of God. Using the Force Major Clause the project registration will be extended by 6 Month automatically. Completion dates of existing projects to be extended automatically by 6 Months by Govt authorities.

14. *Tax Related Step*- Non Salaried TDS and TCS rates will be reduced by 25% from existing rates. This will be effective from tomorrow and will remain till 31-03-2021.

15. *Tax Related Step*- All Pending Refunds will be issued immediately to all even above 5 Lakhs. For AY 2020-21 the ITR Dates extended to 30th Nov 2020, And Tax Audit Date extended to 31st October 2020.

14/03/2020

*39th GST Council Meeting Highlights*
🌴Infosys Nilekani gave GST Network presentation to Council.
🌴Council ask Infosys to improve GST Network by July
🌴Decides to extend deadline for filing of GSTR9 & GSTR9C for FY18-19 till June 30, 2020,
🌴Filing to be mandatory for taxpayers over Rs 5cr of annual turnover
🌴GST Council to continue with 3B till September & defer the new return system.
🌴Council defers the proposal on taxability of economic surplus of brand owners of alcohol for human consumption,
🌴Reassures states towards payment of compensation dues,
🌴Where Cancellation have been cancelled till March 14, application for cancellation of revocation can be filed till March 31, 2020.
🌴GSTR-1 to be made compulsory only for making B2B supplies, exports & amendments
B2C & non-filers of GSTR-3B to be exempted from filing GSTR-1
Before 10th for turnover greater than Rs 1.5 cr
Before 13th for turnover lesser than Rs 1.5 cr
GSTR-2A to be generated on 14th of every month
🌴Council approves “Know your Supplier” Scheme
🌴*Major Relief*: Interest for delay in payment will now be charged on next cash liability under Section 50, to be applicable from July 2017
🌴Council Cuts Aircraft MRO Tax to 5% from 18%.
🌴Rates for all types of match sticks which are machine and handmade have been rationalised for 12% now
🌴Mobile phones to be taxed at 18 percent (current rate 12 percent).

03/02/2020

*Key features of ..SPICe+ Greater Ease of Doing Business🎯*

As part of Government of India’s Ease of Doing Business (EODB) initiatives, the Ministry of Corporate Affairs would be shortly notifying & deploying a new Web Form christened ‘SPICe+’ (pronounced ‘SPICe Plus’) replacing the existing SPICe form.
SPICe+ would offer 10 services by 3 Central Govt Ministries & Departments. (Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance) and One State Govt.(Maharashtra), thereby saving as many procedures, time and cost for Starting a Business in India and would be applicable for all new company incorporations w.e.f 15th February 2020.
Features:
1. SPICe+ would be an integrated Web Form.

2. SPICe+ would have two parts viz.: Part A-for Name reservation for new companies and Part B offering a bouquet of services viz.
(i) Incorporation
(ii) DIN allotment
(iii) Mandatory issue of PAN
(iv) Mandatory issue of TAN
(v) Mandatory issue of EPFO registration
(vi) Mandatory issue of ESIC registration
(vii) Mandatory issue of Profession Tax registration(Maharashtra)
(viii) Mandatory Opening of Bank Account for the Company and
(ix) Allotment of GSTIN (if so applied for)

3. Users may either choose to submit Part-A for reserving a name first and thereafter submit Part B for incorporation & other services or file Part A and B together at one go for incorporating a new company and availing the bouquet of services as above.

4. A new and user friendly Dashboard on the Front Office is being created for company incorporation application (SPICe+ and linked forms as applicable).

5. Incorporation applications (Part B) after name reservation (In Part A) can be submitted as a seamless process in continuation of Part A of SPICe+. Stakeholders will not be required to even enter the SRN of the approved name as the approved Name will be prominently displayed on the Dashboard and a click on the same will take the user for continuation of the application through a hyperlink that will be available on the SRN/application number in the new dashboard.

6. Resubmission of applications for company name reservation and/or incorporation shall also be handled through the application number/Name applied for link on the new dashboard. A hyperlink will be available for the SRN/application number, so as to enable easy resubmission, wherever required.
7. From 15th February 2020 onwards, RUN service would be applicable only for ‘change of name’ of an existing company.

8. The new web form would Facilitate On-screen filing and real time data validation for seamless incorporation of companies.

9. The approved name and related incorporation details as submitted in Part A, would be automatically Pre-filled in all linked forms also viz., AGILE-PRO, eMoA, eAoA, URC1, INC-9 (as applicable)

10. For ensuring ease while filing, SPICe+ will be structured into various sections.

11. Information once entered can be saved and modified.

12. All Check form and Pre-scrutiny validations (except DSC validation) will happen on webform itself.

13. Once the SPICe+ is filled completely with all relevant details, the same would then have to be converted into pdf format, with just a click of the mouse button, for affixing DSCs.

14. All digitally signed applications can then be uploaded along with the linked forms as per the existing process.

15. Changes/modifications to SPICe+ (even after generating pdf and affixing DSCs), can also be done by editing the same web form application which has been saved, generating the updated pdf affixing DSCs and uploading the same.

16. DSC validation and other validations will happen at Upload Level.

17. Registration for EPFO and ESIC shall be mandatory for all new companies incorporated w.e.f 15 February 2020 and no EPFO & ESIC registration nos. shall be separately issued by the respective agencies.

18. Registration for Profession Tax shall also be mandatory for all new companies incorporated in the State of Maharashtra w.e.f 15th February 2020.

19. All new companies incorporated through SPICe+ (w.e.f 15th February 2020) would also be mandatorily required to apply for opening the company’s Bank account through the AGILE-PRO linked web form.

20. Declaration by all Subscribers and first Directors in INC-9 shall be auto-generated in pdf format and would have to be submitted only in Electronic form in all cases, except where:

(i) Total number of subscribers and/or directors is greater than 20 and/or

(ii) Any such subscribers and/or directors has neither DIN nor PAN.

01/02/2020

Optional tax slab *without deduction*

0 - 2.5 lacs - 0%
2.5 - 5 lacs - 5%
5 - 7.5 lacs - 10%
7.5 - 10 Lacs - 15%
10 - 12.5 Lacs - 20%
12.5 - 15 lacs - 25%
Above 15 lacs - 30%

01/02/2020

*BUDGET 2020 BULLETIN*
Upto 01:30 PM
*Direct Taxation*
• Govt to amend Income Tax Act so merged PSU banks can absorb losses
• FY21 divestment target said to be Rs 2.1 lakh cr vs FY20 target of Rs 1.05 lakh crore
• Interest & penalty waived in dispute settlement scheme till March 31, 2020
• Govt to launch new direct tax dispute settlement scheme
• Govt to launch 'Vivaad Se Vishwas' Scheme to reduce tax litigation
• Govt to amend I-T Act to allow faceless appeals
• To make process of registering charitable institutions electronic: FM
• Tax holiday for affordable housing extended by 1 year
• Higher deposit insurance will cover 75% of all depositor vs 61% earlier: CRISIL
• Audit threshold for MSMEs raised to Rs 5 cr from Rs 1 cr
• Tax on co-operative societies reduced to 22% from 30%
• Govt proposes to make tweaks to tax structure for start-ups
• FM extends concessional 5% withholding tax to municipal bonds
• FM announces 100% tax exemption on sovereign wealth funds' infra investment
• Tax cuts positive for household savings, which have been falling but need to watch how much of that is spent on consumption: CRISIL
• FM proposes to allow deduction of dividend received by holding cos from units
• New power generation cos to be offered 15% tax rate: FM
• Revenue loss of Rs 25,000 cr due to abolishment of DDT: FM Sitharaman
• Good News!! Dividend distribution tax abolished.
• Current I-T Act offers more than 100 deductions & exemptions, says FM Sitharaman
• New I-T scheme available for those willing forgo deductions, exemptions: FM
• No income tax for income up to Rs 5 Lakh
• 20% income tax for income between Rs 10-12.5 lakh vs 30% earlier
• 15% income tax for income between Rs 7.5-10 lakh vs 20% earlier
• 10% income tax for income between Rs 5-7.5 lakh: FM
• Saw substantial loss of revenue due to Corp tax cut in short term: FM Sitharaman

01/02/2020

Considering the difficulties being faced by taxpayers in filing GSTR-9 and GSTR-9C for FY 2017-18 it has been decided to extend the due dates in a staggered manner for different groups of States to 3rd, 5th and 7th February 2020 as under. Notifications will follow.

28/01/2020

New Functionality in your Income Tax Profile from Today > Under Compliance > namely "Prescribed Payment Modes"

In order to comply with Section 269SU, Taxpayers with Turnover above INR 50 Crores have to report as to how/What prescribed mode of Electronic Acceptance of Payment they have made available to their Customers out of below 3 methods [in addition to all other electronic modes of payment, being presently provided ]

■ Rupay Debit Card;
■ BHIM-UPI;
■ UPI QR Code.

31.01.2020 is last date to reply after that there is penalty of Rs.5000/- per day.