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28/08/2024

*1 सितंबर 2024 से जीएसटी रिटर्न दाखिल नहीं कर पाएंगे टैक्सपेयर्स, अगर वैध बैंक खाते का विवरण नहीं दिया*

अधिसूचना क्रमांक 31/2019 दिनांक 28.06.2019 के अनुसार,द्वारा अधिसूचित GST Rule, 2017 के नियम 10ए के अनुसार करदाता को पंजीकरण की तारीख से 30 दिनों की अवधि के भीतर, या फॉर्म में माल या सेवाओं या दोनों की बाहरी आपूर्ति का विवरण प्रस्तुत करने से पहले एक वैध बैंक खाते का विवरण, GSTR-1, GSTR-3B जीएसटीआर-1या इनवॉइस फर्निशिंग सुविधा (आईएफएफ) का उपयोग करना, जो भी पहले हो, प्रस्तुत करना आवश्यक है।

जीएसटी पंजीकरण में वैध बैंक खाते का विवरण प्रस्तुत करने के संबंध में करदाताओं को सूचित करने के लिए समय-समय पर सलाह और विभिन्न संचार पहले ही जारी किए जा चुके हैं।

*अब यह नियम 01 सितंबर 2024 से लागू हो रहा है*. इसलिए, अगस्त-2024 से आगे की कर अवधि के लिए, करदाता जीएसटी पोर्टल पर अपने पंजीकरण विवरण में वैध बैंक खाते का विवरण प्रस्तुत किए बिना, जैसा भी मामला हो, जीएसटीआर-1 और जीएसटीआर-3बी रिटर्न जमा नहीं कर पाएंगे।

इसलिए, उन सभी करदाताओं से, जिन्होंने अभी तक वैध बैंक खाते के विवरण प्रस्तुत नहीं किए हैं, अनुरोध किया जाता है कि वे अपने पंजीकरण विवरण में अपने बैंक खाते की जानकारी जोड़ें। और वैध बैंक को जोड़ने तरीका
Services > Registration > Amendment of Registration Non - Core Fields tabs on GST Portal.

जीएसटी पंजीकरण में वैध बैंक खाते के विवरण के अभाव में, आप अगस्त-2024 रिटर्न अवधि से, जैसा भी मामला हो, जीएसटीआर-1 या आईएफएफ दाखिल नहीं कर पाएंगे।

रिटर्न दाखिल न करने की स्थिति में *धारा 47* के तहत विलंब शुल्क का प्रावधान है। *शून्य के मामले में रु 20 और आपूर्ति के मामले में रु 50* है।. SGST/CGST की *धारा 125 के तहत कर योग्य रिटर्न दाखिल करने में देरी की स्थिति में विभाग द्वारा 50,000 रुपये* का जुर्माना लगाया जा सकता है

इसलिए करदाता को सलाह दी जाती है कि वे विलंब शुल्क और जुर्माने से बचें, बिना किसी देरी के पंजीकरण में बैंक विवरण अपलोड करें।

24/07/2024

Taxation of Capital Gains - Salient Points

👉🏻Holding period has been simplified. There are only two holding periods, for listed securities, it is one year, for all other assets, it is two years.

👉🏻Rate for short-term STT paid listed equity, Equity oriented mutual fund and units of business trust has increased from 15 to 20%. Similarly the rate for these assets for long-term has increased from 10 to 12.5%. However, the exemption limit of 1 lakh for LTCG on these assets has also increased to Rs. 1.25 lakh.

👉🏻The rate for other long-term capital gains on all assets has been rationalized to 12.5% without indexation. This rate was earlier 20% with indexation. This will ease in simplifying the taxation of capital gains and their easy computation.

👉🏻There is no change in roll over benefits already available under the IT Act. Therefore, taxpayers who want to save on LTCG tax even with low rates, can continue to avail the roll over benefits on fulfillment of conditions as applicable.

👉🏻These changes have come immediately i.e. apply from 23.7.2024.

👉🏻The reduction in the rate will benefit all category of assets. The benefit shall however depend on the extent of appreciation of the asset during the holding period. An illustration is given below:

25/07/2023

Section 80EEA - Deduction for interest paid on home loan for affordable housing

Under the objective “Housing for all”, the government extended the interest deduction allowed for low-cost housing loans taken during the period between 1 April 2019 and 31 March 2022.

Accordingly, a new Section 80EEA has been inserted to allow for an interest deduction from AY 2020-21 (FY 2019-20). The older provision of Section 80EE allowed a deduction of up to Rs 50,000 for interest paid by first-time home-buyers for loans sanctioned from a financial institution between 1 April 2016 and 31 March 2017.

With a view to further the benefit and giving impetus to the real estate sector, the government has extended the benefit for FY 2019-20. This deduction can be claimed until you have repaid the housing loan.

Latest Update

Budget 2023 proposes that when calculating capital gains from the sale of a residential property, the cost of acquisition should not include any home loan interest claimed as an income-tax deduction by the seller throughout the holding term.

Features of Section 80EEA
Eligibility criteria
The deduction under this section is available only to individuals. This deduction is not available to any other taxpayer. Thus, if you are a HUF, AOP, partnership firm, company, or any other kind of taxpayer, you cannot claim any benefit under this section.

Tax Benefits on Home Loan (FY 2022-23)
The table below gives you the tax benefits under the sections of the Income Tax Act, 1961.

Income Tax Act Deduction Amount
Section 24 Rs.2 lakh p.a.
Section 80C Rs 1.5 lakh p.a.
Section 80EE Rs 50,000 p.a.
Other conditions
Similar to Section 80EE, in order to claim a deduction under Section 80EEA, you should not own any other house property on the date of the sanction of a loan.

How is the Deduction Calculated Under Section 80EEA?
Let's look at two examples to calculate deductions under Section 80EEA:

Example 1:

Mr Manohar took out a home loan in FY 2019-20 for a house with a stamp duty value of Rs 40 lakh, and he paid Rs 4,00,000 in interest for the year. He did not own any other residential property on the date the loan was issued. Is Mr Manohar qualified for a Section 80EEA deduction?

In this case, Mr Manohar can claim a Rs 200,000 deduction for home loan interest under Section 24. Furthermore, because the house's stamp value is less than Rs 45 lakh, he is eligible for a Rs 1,50,000 deduction under Section 80EEA. As a result, Mr Manohar is eligible for a total deduction of Rs 3,50,000 under Sections 80EEA and 24.

Example 2:

Mr and Mrs Biswas purchased a house of Rs 45 lakh in FY 19-20, and Mr Biswas also took out a home loan with an annual interest payment of Rs 3,00,000. Mr and Mrs Biswas, can they both claim deductions under Section 80EEA?

Mrs Biswas is not a co-borrower in the loan, hence only Mr Biswas can claim a deduction under Section 80EEA. Mr Biswas can claim a total deduction of Rs 3,00,000 (Rs 2,00,000 under Section 24 and Rs 1,00,000 under Section 80EEA).

Conditions for claiming the deduction
Housing loan must be taken from a financial institution or a housing finance company for buying a residential house property.
The loan should be sanctioned during the period 1st April 2019 and 31st March 2022.
Stamp duty value of the house property should be Rs 45 lakh or less.
The individual taxpayer should not be eligible to claim a deduction under the existing Section 80EE.
The taxpayer should be a first-time home buyer. The taxpayer should not own any residential house property as of the date of sanction of the loan.
Conditions with respect to the carpet area of the house property. These conditions have been specified in the memorandum to the finance bill, but not mentioned in section 80EEA:

The carpet area of the house property should not exceed 60 square meter ( 645 sq ft) in metropolitan cities of Bengaluru, Chennai, Delhi National Capital Region (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of Mumbai Metropolitan Region)
Carpet area should not exceed 90 square meter (968 sq ft) in any other cities or towns.
Further, this definition will be effective for affordable real estate projects approved on or after 1 September 2019
Section 80EEA has been introduced to further extend the benefits allowed under Section 80EE for low-cost housing. Earlier, Section 80EE had been amended from time to time to allow a deduction for interest paid on housing loans for FY 2013-14, FY 2014-15, and FY 2016-17.

The section does not specify if you need to be a resident to be able to claim this benefit. Therefore, it can be concluded that both Resident and Non-Resident Indians can claim this deduction.

The section also does not specify if the residential house should be self-occupied to claim the deduction. So, borrowers living in rented houses can also claim this deduction. Moreover, individuals can only claim the deduction for house purchases jointly or singly. If a person jointly owns the house with a spouse and they both are paying the instalments of the loan, then both of them can claim this deduction. However, they must meet all the conditions laid down.

Tax deductions for stamp duty and registration charges
Stamp duty and registration fees can also be claimed as tax deductions under Section 80C of the Income Tax Act, but they must be within the overall maximum of Rs 1.5 lakh applied to principal payments. This benefit is available whether or not you take out a home loan. Furthermore, this benefit is only available in the year in which the expenses are incurred.

Tax deductions on interest paid for properties under construction
The Income Tax Act allows for the deduction of both pre-construction and post-construction period interest. Interest on pre-construction loans is deductible in five equal annual instalments beginning with the year the residential property is acquired or completed. Hence, the total interest deduction allowed to a taxpayer under Section 24(b) is 1/5th of the interest pertaining to the pre-construction period (if any) plus interest pertaining to the post-construction period (if any).

Tax deduction on home loans under Section 24B
Section 24(b) of the Income Tax Act allows you to deduct the interest paid on your house loan. A maximum tax deduction of Rs. 2 lakh can be claimed from your gross income yearly for a self-occupied residence, provided the construction/acquisition of the house is completed within five years.

If you are able to satisfy the conditions of both Section 24 and Section 80EEA of the Income Tax Act, you can claim the benefits under both sections.

First, exhaust your deductible limit under Section 24, which is Rs 2 lakh. Then, go on to claim the additional benefits under Section 80EEA. Therefore, this deduction is in addition to the Rs 2 lakh limit allowed under Section 24.

Tax benefits on joint home loan
If you take out a home loan jointly, each borrower can claim a deduction for home loan interest up to Rs 2 lakh under Section 24(b) and a tax deduction for principal repayment up to Rs 1.5 lakh under Section 80C. When compared to a single-applicant home loan, this doubles the number of deductions possible. It is needed, however, that both applicants be co-owners of the property and serve the EMIs.

Tax benefits on second home loan
If you take out a second house loan to buy another property, you can enjoy the same tax benefits, but the total amount of deductions are subject to the relevant restrictions listed above. The government has introduced further incentives for investing in real estate in the 2019 Union Budget. Before, only one property could be considered self-occupied, and a second house was deemed to be let out, and therefore notional rent was computed and taxed as income. Nonetheless, a second home can now be deemed a self-occupied property.

Frequently Asked Questions
Can joint owners claim deduction under section 80EEA separately?
If the joint owners meet all the conditions specified in the Income Tax Act, they can claim a deduction of Rs 1.5 lakh each.

How much deduction can I claim out of the total repayment of a housing loan made during the financial year?
You can claim principal repayment of up to Rs.1.5 lakh as a deduction under section 80C. To claim the deduction under section 80EEA, ascertain the total interest portion during the year and claim a deduction of Rs.2 lakh under section 24(b). If the limit is exhausted, you can claim further deduction under section 80EEA up to Rs.1.5 lakh, subject to all other conditions for eligibility being satisfied.

Does home loan protection insurance provide tax benefits?

You can claim a tax deduction for the amount paid for a home loan protection insurance plan under Section 80C. When you borrow premium money from your lender and pay it back in EMIs, the deduction is not allowed.

Can I get a deduction for home loan interest payments both u/s 80EE and 80EEA?
No, the 80EEA deduction requires that you don’t claim a deduction u/s 80EE.

Can I avail deductions under sections 24 and 80EEA at the same time?
Yes, they can be claimed simultaneously.

Is there a tax benefit for home loan top-ups?
A top-up home loan is eligible for tax benefits under Section 80C if used for the purchase or construction of a residential property, and Section 24(b) if used for the acquisition, construction, repair, renewal, or reconstruction of residential property, depending on the deduction claimed.

10/08/2022

To record the transactions in the books of accounts we follow the 3 golden rules of accounting in the traditional approach.

17/12/2020

TDS & Advance Tax

Obligation of compliance of TDS provisions

It is to be noted that the provisions for presumptive taxation override only sec 28 to 43C and not the provisions of TDS. Therefore, the assessee declaring income u/s 44AD, 44ADA, or 44AE is liable to deduct TDS e.g. Every person is required to deduct TDS u/s 192 if the estimated salary exceeds the maximum amount not chargeable to tax. Any individual paying salary of Rs. 8,50,000 p.a. would be required to deduct TDS even though he is declaring income u/s 44AD.

Further, sec 194A, 194C, 194H, 194I, and 194J have been amended by Finance Act, 2020.

Now, individual or HUF having turnover/ gross receipts of more than Rs. 1 crore in case of business and more than Rs. 50 Lakh in case of the profession during the preceding financial year shall be required to deduct TDS under the above sections. Earlier in sec 194A, 194H, 194I, and 194J, it was mentioned that if the turnover/ receipts exceed the monetary limits specified u/s 44AB in the preceding financial year. In sec 194C, it was if individual or HUF was liable for audit under clause (a) or (b) of section 44AB in the preceding financial year.

Effect of amendment: The persons having turnover of more than Rs. 1 crore but less than Rs. 2 crores and declaring income u/s 44AD would be required to deduct TDS under the above sections.


Example:

Mr. A has a turnover of Rs. 1,25,00,000 in the P.Y. 2018-19. In F.Y. 2019-20, he paid interest of Rs. 25,000. Whether Mr. A has to deduct TDS u/s 194A if he declares income u/s 44AD?

Yes, Mr. A will be required to deduct TDS u/s 194A as his turnover in the preceding F.Y. is above Rs. 1 crore. The interest amount is above Rs. 5,000. Hence, Mr. A will be required to deduct TDS even if income is declared u/s 44AD otherwise he will be deemed as assessee in default as per sec 201. However, he does not deduct TDS, no disallowance of the expense will be made as per sec 40(a).

EXAMPLE: In case of the eligible assessee being a Firm that offers income under the presumptive income scheme and does not maintain books of accounts, where it is liable to deduct TDS from interest, contract work, salary, etc. then whether it has to deduct tax at source at the time of payment only?

Ans: A firm doing eligible business under section 44AD though not maintaining books is fully covered under the provisions of TDS like section 194A, 194C, etc. and is liable for deducting tax at the time of credit to the account of the payee (liability to pay arises) or payment thereof to the payee whichever is earlier.


Obligation of compliance of Advance Tax provisions
Further, since the presumptive taxation regime has been extended for professionals also, the eligible assessee is now required to pay advance tax by 15th March of the financial year.

Section 211(1)(b): an assessee who declares profits and gains in accordance with the provisions of sub-section (1) of section 44AD or sub-section (1) of section 44ADA, as the case may be, to the extent of the whole amount of such advance tax during each financial year on or before the 15th March:

Section 234B: The provisions of sec 234B(1) are as:

Subject to the other provisions of this section, where, in any financial year, an assessee who is liable to pay advance tax under section 208 has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of section 210 is less than ninety percent of the assessed tax, the assessee shall be liable to pay simple interest at the rate of one percent for every month or part of a month comprised in the period from the 1st day of April next following such financial year to the date of determination of total income under sub-section (1) of section 143 and where a regular assessment is made, to the date of such regular assessment, on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid as aforesaid falls short of the assessed tax.

Interest u/s 234B is charged if an assessee fails to deposit at least 90% of the total tax liability as advance tax. If advance tax is not deposited up to 31st March of P.Y. interest is charged @ 1% p.m. or part thereof up to the date of payment of such tax.

Section 234C(1)(b): The provisions of sec 234C(1)(b) are as


an assessee who declares profits and gains in accordance with the provisions of sub- section (1) of section 44AD or sub-section (1) of section 44ADA, as the case may be, who is liable to pay advance tax under section 208 has failed to pay such tax or the advance tax paid by the assessee on its current income on or before the 15th day of March is less than the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one percent on the amount of the shortfall from the tax due on the returned income

If the advance tax in case of assessee covered u/s 44AD and 44ADA is not paid up to 15th March, the assessee shall be liable to pay interest u/s 234C @1%.

Proviso to 211(1) says any amount paid by way of advance tax on or before the 31st day of March shall also be treated as advance tax paid during the financial year ending on that day.

Note: As per section 208: advance tax shall be payable if the tax liability is Rs. 10,000 or more.

Example: Dr. Deepak is a cardiologist having gross receipts of Rs. 45,00,000 for the P.Y. 2019-20. He declares his income u/s 44ADA. Compute his advance tax liability and interest u/s 234B and 234C if (a) he deposits advance tax on 20th March (b) if he does not deposit advance tax.

The tax payable by Dr. Deepak is Rs. 5,07,000 which is more than Rs. 10,000. Hence, he is required to deposit his entire advance tax liability on or before 15th March 2020. If he deposits 90% or more of his advance tax liability before 31st March of the P.Y., no interest u/s 234B would be charged. However, if advance tax is not deposited up to 31st March of P.Y. interest is charged @ 1% p.m. or part thereof up to the date of payment. Interest u/s 234C will be charged @1% if advance tax is not deposited on or before 15th March of the P.Y.

In case (a) he deposited advance tax on 20th March 2020, no interest will be charged u/s 234B. However, interest u/s 234C will be charged @ 1% of Rs. 5,07,000 = Rs.5,070

In case (b) he has not deposited advance tax. Interest u/s 234C will be charged @1% of Rs. 5,07,000 = Rs. 5,070. Interest u/s 234B will be charged @ 1% p.m. or part thereof up to the date of payment. Suppose, return is filed and tax is paid on 20th July 2020, interest u/s 234B will be Rs.20,280(1% p.m. for four months, Rs.5,07,000*1% * 4 months).

25/10/2020

Extension of due date of furnishing of Income Tax Returns and Audit
Reports

In view of the challenges faced by taxpayers in meeting the statutory and
regulatory compliances due to the outbreak of COVID-19, the Government brought the
Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 (‘the
Ordinance’) on 31st March, 2020 which, inter alia, extended various time limits. The
Ordinance has since been replaced by the Taxation and Other Laws (Relaxation and
Amendment of Certain Provisions) Act.

2. The Government issued a Notification on 24th June, 2020 under the
Ordinance which, inter alia, extended the due date for all Income Tax Returns for the
FY 2019-20 (AY 2020-21) to 30th November, 2020. Hence, the returns of income which
were required to be filed by 31st July, 2020 and 31st October, 2020 are required to be
filed by 30th November, 2020. Consequently, the date for furnishing various audit
reports including tax audit report under the Income-tax Act, 1961 (the Act) has also
been extended to 31st October, 2020.

3. In order to provide more time to taxpayers for furnishing of Income Tax
Returns, it has been decided to further extend the due date for furnishing of Income-Tax
Returns as under:
(A) The due date for furnishing of Income Tax Returns for the taxpayers
(including their partners) who are required to get their accounts audited [for whom the
due date (i.e. before the extension by the said notification) as per the Act is 31st
October, 2020] has been extended to 31st January, 2021.
(B) The due date for furnishing of Income Tax Returns for the taxpayers who
are required to furnish report in respect of international/specified domestic transactions
[for whom the due date (i.e. before the extension by the said notification) as per the Act
is 30th November, 2020] has been extended to 31st January, 2021.
(C) The due date for furnishing of Income Tax Returns for the other taxpayers
[for whom the due date (i.e. before the extension by the said notification) as per the Act
was 31st July, 2020] has been extended to 31st December, 2020.

08/08/2020

Bi-Monthly Monetary Policy released today by RBI

On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (August 6, 2020) has decided to

Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent. Consequently, the reverse repo rate under the LAF remains unchanged at 3.35 percent and the marginal standing facility (MSF) rate and the Bank Rate at 4.25 percent.
The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth and mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward.

The Highlights of press release:
Global Economy:
Since the MPC met in May 2020, global economic activity has remained fragile and in retrenchment in several geographies. Contractions in economic activity have been more severe in Q2:2020 than in Q1, and the near-term outlook points to a slow, uneven and hesitant recovery pushed into the second half of the year, with risks steeply slanted to the downside. Among advanced economies (AEs), output in the US and the Euro area underwent a deeper contraction in Q2:2020 than in the preceding quarter. Emerging market economies (EMEs) are expected to shrink in Q2 as reflected in high frequency indicators.
Global financial markets have rebounded since end-March 2020 with intermittent pauses, shrugging off the volatility and sharp correction recorded in Q1:2020.
Crude oil prices have remained supported on supply cuts by oil producing countries (OPEC plus) and improved demand prospects on the gradual easing of lockdown restrictions since May. Gold prices have rallied to an all-time high on August 5 on the back of safe haven demand

Domestic Economy:
On the domestic front, economic activity had started to recover from the lows of April-May following the uneven re-opening of some parts of the country in June; however, surges of fresh infections have forced re-clamping of lockdowns in several cities and states. Consequently, several high frequency indicators have levelled off.
The agricultural sector has emerged as a bright spot.
All manufacturing sub-sectors, except pharmaceuticals, remained in negative territory. The output of core industries in June contracted for the fourth successive month though with a considerable moderation
Services sector activity for May-June indicate signs of a modest resumption of economic activity, especially in rural areas.

On the other hand, domestic air passenger traffic and cargo traffic continued to post sharp contraction. Construction activity remained tepid – cement production fell and finished steel consumption moderated sharply in June. Imports of capital goods – a key indicator of investment activity – declined further in June.
Domestic financial conditions have eased substantially and systemic liquidity remains in large surplus, due to the conventional and unconventional measures by the Reserve Bank since February 2020.
India's merchandise exports contracted for the fourth successive month in June 2020, although the pace of fall moderated on improving shipments of agriculture and pharmaceutical products. Imports fell sharply in June in a broad-based manner, reflecting weak domestic demand and low international crude oil prices

Outlook:
Supply chain disruptions on account of COVID-19 persist, with implications for both food and non-food prices.
The recovery in the rural economy is expected to be robust, buoyed by the progress in kharif sowing. On the other hand, consumer confidence turned more pessimistic in July
For the year 2020-21, as a whole, real GDP growth is expected to be negative. An early containment of the COVID-19 pandemic may impart an upside to the outlook. A more protracted spread of the pandemic, deviations from the forecast of a normal monsoon and global financial market volatility are the key downside risks.
Economy is experiencing unprecedented stress in an austere global environment. Extreme uncertainty characterises the outlook, which is heavily contingent upon the intensity, spread and duration of the pandemic – particularly the heightened risks associated with a second wave of infections – and the discovery of the vaccine.
In these conditions, supporting the recovery of the economy assumes primacy in the conduct of monetary policy. In pursuit of this objective, the stance of monetary policy remains accommodative as long as it is necessary to revive growth and mitigate the impact of COVID-19 on the economy.
Meanwhile, the cumulative reduction of 250 basis points since February 2019 is working its way through the economy, lowering interest rates in money, bond and credit markets, and narrowing down spreads. Financing conditions have eased considerably, enabling financial flows via financial markets, especially at a time when banks remain highly risk averse. Accordingly, the MPC decides to stay on hold with regard to the policy rate
Disclaimer: This article or blog or post (by whatever name) is based on the writer's personal views. The writer does not accept any liabilities for any loss or damage of any kind arising out of information and for any actions taken in reliance thereon. This article has been published for knowledge sharing purpose only

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