TAX GRIP

New Form ITR-U Under Section 139(8A) for updated Income Tax Returns   The CBDT has notified a new form for filing updated Income Tax returns in which taxpayers will have to give the exact reason for filing it along with the amount of income to be offered to tax. Commence from which Financial Year: The return has to be filed Under Section 139(8A) relating to the Assessment Year commencing from 01.04.2020 and subsequent assessment years. The new form (ITR-U) will be available to taxpayers for filing updated income tax returns from the Financial Year 2019-20. Eligibility of filing ITR-U: Taxpayers filing ITR-U, which can be filed within 2 years of the end of the relevant assessment year, will have to give reasons for updating the income – v      v return previously not filed, or v      v income not reported correctly, or v      v wrong heads of income chosen, or v      v reduction of carried forward loss, ...

 

 

 Union Budget Highlights 2022  1. New passports: E-passports using embedded chips and futuristic tech will be rolled out. 2. For urban capacity building, support will be provided to states - mass transit, planning help, etc. 3. Transliteration of land records in 8 languages will be rolled out. 4. One Class 1 TV channel to be launched to give supplementary education to children to make up for loss of formal education due to COVID-19. 5. 5G rollout:Sp ectrum auction will be conducted to roll out 5G mobile services within 2022-23 by private firms. 6. Bharat Net optical fibre project to be complete in 2025. 7. All post offices to be linked with core banking solution to push financial inclusion. 8. PM Gati Shakti, inclusive development, energy transition and financing of investments. 9. 68% capital for procurement for defence will be for domestic industry. 10. Capital expenditure raised by 35.40 per cent from Rs 5.54 lakh crore to Rs 7.50 lakh crore. 11. Effective expenditure will ...

  Earlier finding the corresponding HSN codes vis a vis a common description was a bit challenging for the taxpayer. To ameliorate this challenge and to make the functionality user friendly, ‘Search HSN’ functionality has been revamped by linking it with e-invoice database and Artificial Intelligence tools in the following ways:   1. The Search HSN Code functionality has been enhanced, where the taxpayers can search the HSN code and the applicable Technical description through common parlance / trade description of the goods/ services as they are known in the Trade. It helps the taxpayers to search HSN Code by providing description/ part of a description. 2. The facility is available at both pre-login and post login. Taxpayers/users can access the same by the following navigation: Home>Services>User services>Search HSN Code 3. Taxpayer can search HSN/ Description using either of the two options which are provided as radio buttons: (i) HSN and (ii) Descri...

  Changes in GSTR 1 Format A revamped & enhanced version of GSTR-1/IFF is being made available on the GST Portal.  1 . GSTR 1 Dashboard is Reorganized: GSTR-1/IFF has been grouped in two sections namely ADD RECORD DETAILS (For adding new details) and AMEND RECORD DETAILS (amending previously filed details)  2. Table/Tile Document Counts : The document count for each tile (table) has been made more informative with color coding. The status of uploaded (Saved, Pending, Errored) documents with their count will also be made available. 3. Enhancement in B2B and CDNR table/tile: Taxpayers will now be able to view a new record details table with the details of the recipient -wise count of records. 4. Records per page feature: Taxpayers can customized number of records to be viewed on per page. By default, the Records per page will be set at 10 records per page and can be increased to view 100 records per page. 5. Changes in Steps to file GSTR-1/IFF: In case new records have ...

  The technical aspects of the scheme of Input Tax Credit (ITC) A.   Who can avail ITC? Any registered person can avail credit of tax paid on the inward supply of goods or services or both, which is used or intended to be used in the course or furtherance of business. B. What are the pre-requisites for availing credit by registered person? a. He is in possession of tax invoice or any other specified tax paying document. b. He has received the goods or services. “Bill to ship” scenarios also included. c. Tax is actually paid by the supplier. d. He has furnished the return. e. If the inputs are received in lots, he will be eligible to avail the credit only when the last lot of the inputs is received. f. He should pay the supplier, the value of the goods or services along with the tax within 180 days from the date of issue of invoice, failing which the amount of credit availed by the recipient would be added to his output tax liability, with interest [rule 2(1)...

ANNUAL INFORMATION STATEMENT The Income Tax Department has initiated the new Annual Information Statement(AIS) on the online portal which shows the taxpayers a facility that captures online feedback. The facility can be accessed by visiting the online portal link of the Annual Information Statement (AIS) under the Services tab on the tax e-filing portal, i.e. https://www.incometax.gov.in. Form 26AS will be displayed on the TRACES portal which will parallel function to the time the new AIS is completely operational. The new AIS related to interest, dividends, securities, transactions, mutual fund transactions, foreign remittance information. The information is processed to eradicate duplicity of information. The taxpayers can download the information in PDF, JSON, and CSV formats. Here is the list of related information to be known about the new Annual Information Statement: If the taxpayer examines whether the information provided is incorrect and is related to t...

Input Tax Credit   What is Input Tax Credit (ITC)? Input Tax Credit refers to the tax already paid by a person at time of purchase of goods or services and which reduce the tax on outputs. Amount Amount Tax on Output 500 Less: Tax paid on Purchase of A 150 Tax paid on Purchase of B 200 Tax paid on Purchase of C 100 450 Tax Payable 50   SGST,  UTGST,  CGST and IGST – How ITC Can be set off Amount of Input Tax Credit on IGST shall first be utilized for the payment of IGST then for payment of CGST and the balance, if any for the payment of SGST or UTGST. Amount of Input Tax Credit on account of CGST shall first be utilized for the payment of CGST then for payment of IGST. Such amount cannot be used for payment of SGST or UTGST. Amount of Input Tax Credit on account of SGST or UTG...