Income tax updates for July 2021

 

Income tax updates for

 July 2021


1.Processing of returns with refund claims under section 143(1) of the Income-tax Act, 1961 beyond the prescribed time limits in non-scrutiny cases-regd. Order under section 119 of the Income-tax Act. 1961.

Central Board of Direct Taxes notices that due to certain technical issues or for other reasons not attributable to the assessees concerned, several returns for various assessment years up to the assessment year 2017-18 which were otherwise filed validly under section 139 or 142 or 119 of the Income-tax Act, 1961 ('Act') could not be processed under sub-section (I) of section 143 of the Act. The taxpayer is unable to get his legitimate refund. To resolve the grievances the earlier order dated 10th July 2020, time frame was given till 31.10.2020 to process such returns with refund claims. To mitigate genuine hardship being faced by the taxpayers on this issue, Board, by virtue of its powers under section 119 of the Act, hereby relaxes the time-frame by 30.09.2021.

2. Section 206 AB and 206 CCA: Higher TDS /TCS for Not Filing of Income Tax Return

The tax is to be deducted or collected at higher rates are those persons who satisfies the following criterion:

Ø  The person who has not filed the income tax return for previous two financial years immediately the year on which tax is to be deducted.

Ø  The time limit to file income tax return under section 139(1) is expired.

Ø  The total TDS is more than INR 50,000 in the two previous financial years.

Note: It does not apply to a non-resident who does not have a permanent establishment in India.

Rate of TDS:

Tax is required to be deducted at higher of the following rates:

a) Twice the rate specified in the relevant provision of the Income Tax Act;

b) Twice the rate or rate in force;

c)At the rate of 5%

Rate of TCS:

Tax is required to be collected at higher of the following rates:

a) Twice the rate or rate in force;

b) At the rate of 5%

 

Read more: https://taxgrip.blogspot.com/2021/07/Section206AB-and-206CCA.html

 

3.Section 194 Q: Buyer to deduct TDS on Purchase of Goods from Seller

Any buyer who is responsible for paying any sum to any resident seller for purchase of any goods of the value or aggregate of value exceeding 50 lakh rupees in any previous year.

The buyer, at the time of credit of such sum to the account of the seller or at the time of payment, whichever is earlier, is required to deduct an amount equal to 0.1 % of such sum exceeding 50 lakh rupees as income tax.

 

Read more: https://taxgrip.blogspot.com/2021/07/tads-purchase-of-goods.html

 

4.Date Extended for 15CA/CB again due to Income Tax portal problems

Due to some issues with the Income Tax portal CBDT giving further relaxation for manual filing of forms 15 CA and 15 CB related to foreign remittances, extended the deadline for the purpose till August 15, 2021.The tax payer can submit manual Form 15CA/CB to the authorised dealers.

 

Read more: https://taxgrip.blogspot.com/2021/07/date-extended-for-15cacb-again-due-to.html

 

5.Form 10IE for opting Section 115BAC has been introduced

Form 10IE is mandatory to be filed by the assesses those who are opting for the New Tax Regime and who are filing return in ITR 3 or 4 only. The Acknowledgement number is required to file ITR 3 or 4.

 

Steps to Form 10IE :

 

  •   Login /E-file/
  •   Income Tax Forms/File income tax forms/
  •   Person not dependent on any source of income (source of income not relevant)/
  •   Determination of tax in certain special cases Form 10IE
  •   Application foe exercise or withdrawal option under section 115 BAC of the             Income Tax Act.

This form is used to opt for new regime and also to quit from the same.

 

Disclaimer: The facts and opinions written in this column are those of the author and have been prepared on the basis of relevant provisions and information available at the time of preparation. The article does not constitute any professional advice or formal recommendation. The author has under taken utmost care to disseminate true and correct views and does not accept liability of any errors or omissions.

 

Having rich experience in various profiles related to Taxation, Audit, Accounting, etc., within India and Abroad.

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