Yogesh Kansal & Company

15/08/2020

13/08/2020

16/07/2020

TDS Applicability on cash withdrawals

14/07/2020

Income Tax Update

One time relaxation for Verification of Income Tax Return :

1) CBDT through circular no. 3/2020 dated 13th July 2020 has given one time opportunity to taxpayers who had filed their ITR online but, verification for the same could not be done.

2) ITR for AY 2015-16, 2016-17, 2017-18, 2018-19, & 2019-20 can be verified availing this one time relaxation scheme.

3) As per the circular, any taxpayer whose ITR is pending for verification can verify their ITR on or before 30th September 2020.

4) All such verified ITRs shall be processed on or before 31st December 2020.

5) ITRs can be verified using any of the options available including aadhar OTP verification or by sending duly signed hard copy to CPC Bangalore etc.

Note: This relaxation shall not be available to a taxpayer against whom any proceeding has already been started by the department for such year.

CBDT: Central Board of Direct Taxes
ITR: Income Tax Return

𝑹𝒆𝒈𝒂𝒓𝒅𝒔
Team YKC

02/07/2020

Decoding revised MSME guidelines 2020:

 The revised MSME guidelines are valid with effect from 1st of July 2020.

 Any enterprise referred to as “Udyam” shall get itself registered on “Udyam Registration Portal” (URP).

 The enterprise shall be assigned a permanent identity number to be known as “Udyam Registration Number” (URN), and an e-certificate namely “Udyam Registration Certificate”(URC) shall be issued on completion of the registration.

 A composite criterion of investment in plant & machinery and turnover shall apply for classification of an enterprise as micro, small or medium:

- Micro: investment does not exceed one crore rupees and turnover does not exceed five crore rupees;
- Small: investment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and
- Medium: investment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.

 All units with GSTIN listed against the same PAN shall be collectively treated as one enterprise for purpose of the calculation of turnover and investment of the enterprise.

 Information relating to turnover and investment in Plant & Machinery for an enterprise shall be linked to the ITR/GSTR for the previous year.

 Export turnover shall not be considered for calculation the turnover of an enterprise.

 All existing enterprises which have already been registered under UAM shall have to register again on the Udyam Registration portal on or after the 1st day of July, 2020, which shall be reclassified in accordance with the new guidelines.

 All enterprises registered prior to 30th June, 2020, shall continue to be valid only for a period up to the 31st day of March, 2021.

 An enterprise having URN shall need to update its information online in the Udyam Registration portal, including the details of the ITR and the GST Return for the previous financial year and such other additional information as may be required, on self-declaration basis.

 Failure to update the relevant information within the period specified in the online Udyam Registration portal will render the enterprise liable for suspension of its status.

 Based on the information updated, the enterprise shall be reclassified, i.e. either upgraded or downgraded.

12/06/2020

List of recommendations made in the 40th GST Council Meeting held on 12th June 2020

1. For all those who have no tax liability but have not filed GST returns for tax period July 2017 - Jan 2020, there shall be no late fee at all.

2. For people who have tax liability, maximum late fee for non-filing of GSTR-3B returns for period Jul 2017 - Jan 2020 has been capped to ₹ 500.
This will apply to all returns submitted during Jul 1, 2020 - Sep 30, 2020.

3. For small tax payers whose aggregate turnover is up to ₹ 5 crore, the rate of interest for late furnishing of GST returns for Feb, Mar and April 2020, beyond July 6, 2020: the rate of interest is being reduced from 18% to 9%.

4. Small tax payers whose aggregate turnover is up to ₹ 5 crore will be provided a waiver of late fees and interest if they file the form GSTR-3B for the supplies affected in months of May, June and July 2020, by September 2020.

5. Tax payers who could not get cancelled GST registrations restored in time are being given an opportunity to apply for revocation of cancellation of registration up to September 30, 2020. In all cases where registration has been cancelled till June 12, 2020.

31/05/2020

CBDT has notified the Income Tax Forms for AY 2020-2021. The forms have been notified without the return filing utility. Thus, a taxpayer who is required to file the return, cannot do so until the return filing facility is made available on the e-filing portal. Key changes in ITR forms for the AY 2020-2021 are as follows:

1. A new Schedule-DI has been inserted to seek details of the investment, deposit and payments made during the extended period till June 2020 for claiming deduction under Chapter VI-A or for rollover of investment in the Financial Year 2019-20.

2. Individual taxpayers who are joint owners of house property will not be able to file ITR 1 or ITR4.

3. The new ITR forms require taxpayers to furnish details of specified high-spend transactions, only if the person is not required to furnish a return under section 139(1) and are filing the return because of any of the following reasons falling under seventh proviso to section 139(1), such as :
- deposit of Rs 1 crore or more in a current account or
- expenditure of Rs 2 lakh or more on foreign travel or
- spending of Rs 1 lakh or more on consumption of electricity

Earlier this week, the income tax department had also notified the revised Form 26AS. Form 26AS has been revamped to an 'Annual Information Statement' which apart from the TDS/TCS details, will now contain comprehensive information about specified financial transactions, payment of taxes, demand/refund and pending/completed proceedings undertaken by a taxpayer in a particular financial year which are to be mentioned in the ITRs.

𝑹𝒆𝒈𝒂𝒓𝒅𝒔
Team YKC

23/05/2020

Income Tax Update:
1. The Government of India had introduced a new provision namely Section 269SU Prescribed Electronic Mode that prescribes certain electronic modes of payments as a mandatory facility provided by every person to their customers
2. The Central Board of Direct Taxes (CBDT) Vide notification no. 105/2019 dated 30.12.2019 had notified the prescribed modes of payment
3. Every person carrying on business and having turnover/gross receipts from business of more than Rs 50 Crores in the immediately preceding previous year, to mandatory provide following facilities for accepting payments for the purpose of section 269SU:
(i) Debit Card powered by RuPay;
(ii) Unified Payments Interface (UPI) (BHIM-UPI); and
(iii) Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code)
4. In a case where a person fails to provide the facility of payment under the prescribed modes, would be liable for a penalty u/s 271DB of Rs 5,000 for every day during which there is a failure or non-availability of the facility.
5. Applicability of the section to start from 1st Feb 2020.
6. However certain relaxations have been provided vide Circular of CBDT No. 12/2020 dated 20th May, 2020.
7. It has been clarified that the provisions of section 269SU of the Act shall not be applicable to a specified person having only B2B transaction s (i.e. no transaction with retail customer/consumer) if at least 95% of aggregate of all amounts received during the previous year are by any mode other than cash.

𝑹𝒆𝒈𝒂𝒓𝒅𝒔
Team YKC

13/05/2020

Income Tax Updates

1. All TDS n TCS rates reduced by 25% for Non Salaried Resident payments

2. All refunds to be issued immediately

3. Income tax returns due date extended to 30-11-2020

4. Tax Audit due date extended to 31-10-2020

5. All Assessments getting barred on 30-9-2020 extended to 31-12-2020

6. All Assessments getting barred on 31-3-2021 extended to 30-9-2021

7. Vivad Se Vishwas Scheme extended to 31-12-2020 without any additional payments

𝑹𝒆𝒈𝒂𝒓𝒅𝒔
Team YKC

25/03/2016