SGC

06/02/2023

Dear Members,

We solicit your gracious presence for a *talk on Union Budget 2023-24* on *9th February, 2023* from *10:00 AM onwards* at *Lal Bahadur Shastri Ganna Kisan Sansthan Auditorium*, Dalibagh, Lucknow.

*Team LCAS*

31/12/2021

Article Assistant in CA Office

07/06/2021

Senior Accountant who can supervise and do statutory compliances.

04/04/2021

Income Tax for Individual Residents

18/02/2021

Audit Assistant and Book Keeping

16/02/2021

*Section 206CCA: Higher Rate of TCS for non-filers of Income Tax Return*

The Finance bill 2021, proposed to insert a new section 206CCA for deduction of TCS at higher rates for those who have not filed their Income Tax Return. Here are the details of the new section 206CCA of the Income Tax Act, 1961.

*Section 206CCA of the Income Tax Act, 1961*
Proposed section 206CCA of the Act would apply on any sum or income or the amount paid, or payable or credited, by a person (herein referred to as deductee) to a “specified person”.

Here “specified person”, has been defined under subsection (3) as a person, who has not filed the returns of income for both of the 2 assessment years relevant to the 2 previous years which are immediately before the previous year in which tax is required to be deducted or collected, as the case may be“.

*Applicability of Section 206CCA*
Section 206CCA of the
Budget 2021, provide for the applicability of section 206CCA w.e.f. 1st July 2021.

*Condition for deduction of TCS u/s 206CCA*

Here are 3 important conditions, which needs to be satisfied before deduction of TCS at higher rates u/s 206CCA

1) Time limit for filing tax returns under sub-section (1) of section 139 of the Act has expired for both these assessment years.

2) Aggregate of tax collected at source in his case is Rs. 50,000 or more in each of these two previous years.

3) Specified person shall not include a non-resident who does not have a permanent establishment in India.

*How would be the ITR filing will be checked of the specified person*

For this purpose, the government would provide a new utility, wherein a deductor will get the details of specified person ITR filing by entering the PAN no. of that person.

However, as a prudent practice, the assessee should keep a copy of the supplier’s ITR for the preceding two financial years as a confirmation to accordingly collect TCS as per the applicable rates.

*Rate of TCS under section 206CCA of the Income Tax Act*
The provisions of sub-section (1) of section 206CCA provide for the rate to be applied. The rate of TCS under section 206CCA of the Income Tax Act will be higher of the following-

a) at twice the rate specified in the relevant TCS provision of the act, or

b) at the rate of 5%.

*Some other Important points for section 206CCA*
🎯 If the specified person does not submit the PAN (section 206CC) as well as not filed the return (section 206CCA), the TCS shall be collected at the higher rates amongst both the sections.

🎯 The non-resident person who does not have any permanent establishment is excluded from the scope of the specified person.

16/02/2021

The DGFT made changes to IEC. Now IEC holders are required to ensure to update IEC electronically every year during April-June period.Even in case of no change, it is required to confirm online. Non complaince will lead to deactivation.

“The DGFT made changes to IEC. Now IEC holders are required to ensure to update IEC electronically every year during April-June period.Even in case of no change, it is required to confirm online. Non complaince will lead to deactivation.”

28/01/2021

Section 115BAC: Features of the new tax regime and its benefits for Salaried Employees From F.Y 2020-21 onwards:

The following are the deductions and exemptions you cannot claim under the new tax system:
1. The standard deduction, professional tax and entertainment allowance on salaries
2. Leave Travel Allowance (LTA)
3. House Rent Allowance (HRA)
4. Minor child income allowance
5. Helper allowance
6. Children education allowance
7. Other special allowances [Section10(14)]
8. Interest on housing loan on the self-occupied property or vacant property (Section 24)
9. Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2) and 80JJAA)
10. Without exemption or deduction for any other perquisites or allowances
11. Deduction from family pension income

Note:
An employee can choose the new tax regime at the beginning of FY 2020-21 and intimate their employer. The employee cannot change their choice anytime during the financial year. However, the change can be done at the time of filing the income tax return in July 2021. The due date for tax filing for the FY 2020-21 (AY 2021-22) is 31 July 2021.
In case an employee does not choose the new tax regime at the beginning of the financial year, the employer will deduct tax (TDS) under the existing tax regime.
A salaried taxpayer can opt-in and opt-out every year. That means you can choose the new tax regime in one year and choose the regular tax regime in another year.
A non-salaried taxpayer has to choose the new regime at the time of filing the tax return. They need not declare or intimate their choice to anyone at any time during the year. However, a non-salaried taxpayer cannot opt-in and opt-out of the new tax regime every year. Once a non-salaried opts out of the new tax regime, they cannot opt-in again for the new tax regime in the future.

30/12/2020

Article Assistant
Chartered Accountants' Office

23/10/2020

We are having vacancy for article assistants in our firm in Lucknow. Contact at 9415099789, Email: [email protected]

06/10/2020

We are looking for a partner for our Chartered Accountancy firm. Interested CAs can contact us on 9415099789, [email protected] , [email protected],

Chartered Accountants and Registered Valuer Firm. Siddharth Gupta & Co. ("SGC")

23/09/2020