TAX GRIP

Ministry of Finance      CBDT extends due dates for filing of Income Tax Returns and various reports of audit for Assessment Year 2021-22. Posted On: 09 SEP 2021 7:24PM by PIB Delhi  On consideration of difficulties reported by the taxpayers and other stakeholders in filing of Income Tax Returns and various reports of audit for the Assessment Year 2021-22 under the Income-tax Act, 1961(the “Act”), Central Board of Direct Taxes (CBDT) has decided to further extend the due dates for filing of Income Tax Returns and various reports of audit for the Assessment Year 2021-22. The details are as under:  1. The due date of furnishing of Return of Income for the Assessment Year 2021-22, which was 31st July, 2021 under sub-section (1) of section 139 of the Act, as extended to 30th September, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 31st December, 2021; 2.The due date of furnishing of Report of Audit under any provision of the Act for t...

The date for filing September 2021 GST Returns are nearing - here is a to-do list you must check off before filing-

  Implementation of the Rule-59(6) on GST Portal from 1st September 2021. 1. Rule-59(6) of CGST Rules, 2017; inserted vide Notification No. 1/2021 dated 1st January 2021, provides for restriction in filing of GSTR-1 in certain cases : a) a registered person shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for preceding two months; b) a registered person, required to furnish return for every quarter under the proviso to sub-section (1) of section 39, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3Bfor preceding tax period; 2. This Rule will be implemented on GST Portal from 1st September, 2021. On implementation of the said Rule, the system will check that whether before the filing of GSTR-1...

 

  4 NEW UPDATES ON GST PORTAL (i) Taxpayers have now been provided the facility to view/download Electronic cash or Credit ledgers for a period of 12 months. Earlier, the ledgers were allowed to be  downloaded for a period of 6 months only. The ledgers can be downloaded in both Excel and Pdf formats. (ii) Upto 6 preferred banks will be shown to a taxpayer while making e-Payment on GST Portal. When a taxpayer makes the first payment, the  GST portal will automatically  add the selected bank and it will get updated in the Preferred Banks list. Taxpayer can delete any of the preferred banks at any point of time.   (iii) Taxpayers can now easily Import the E-way Bill data using the “Import EWB Data” tab available on GST Portal on the Form GSTR-1 page – 4A, 4B, 4C, 6B, 6C – B2B invoices 5A, 5B – B2C (Large) invoices 12 – HSN wise summary of outward supplies.   (iv) Now QRMP taxpayers can file NIL Returns through SMS.  The format of the message is < NIL ...

  Annual Return (GSTR-9) has been enabled in Goods and Service Tax Network (GSTN) The GSTN has enabled Annual Return GSTR-9 for the F.Y 2020-21 on GST Portal for filing. Points to be noted: 1. Annual Return GSTR-9 once filed cannot be revised. 2. Computation of ITC made based on the GSTR-1/IFF/GSTR-5 filed by the tax payer up to July 15, 2021. 3. GSTR-1/IFF/GSTR-5 which has been filed afterwards will be covered in the next update. 4. Return GSTR-1/IFF/GSTR-3B of the financial year should have been filed before the filing of GSTR-9. 5. GSTR-9C will be enables post filing of GSTR-9C 6. If number of records in Table 17 or 18 are more than 500 then offline tool has to be used for filing of GSTR-9 7. For Financial Year 2020-21 the due date of filing GSTR-9 and 9C is December 31, 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...

GST Updates for the month of   July 2021         1.   New functionalities deployed on the GSTN portal in the month of July 2021 Ø   Submission of a complaint in case of misuse of PAN. Ø   Restricting taxpayers to opt for Composition Scheme based on the AATO. Ø   Filing of Nil Form GSTR-1 (Quarterly) through SMS. Ø   Filing of Form GSTR-1 on cancellation of registration. Ø   Timelines for filing of Application for Revocation of Cancellation of Registration in Form GST REG-21-timelines for filing of application for revocation of cancellation is now changed to 90 days (as was earlier) on the GST Portal w.e.f. 01.07.2021, from date of Order of Cancellation of Registration in Form GST REG-19. Ø   Information regarding late fee payable provided in Form GSTR-10. Ø   Auto-population of data in Form GSTR-11 on basis of Forms GSTR-1 / 5 filed by their suppliers. Ø   Auto population of GSTR-3B liability from IFF and For...

Mandatory to furnish bank details within a specified time limit As per Rule 10A of (Goods and Service Tax Network) GSTN, it is mandatory to furnish the bank statement within 45 days from the date of registration or else it may get cancelled if the details are not updated within the time limit. The steps to check and update the bank account details has been furnished. The GST Update ran as follows: Functionality to check and update bank account details. 29/07/2021 How to add bank account in GST registration details. A functionality to check status of bank account details update for the taxpayers who have taken new registration at GST Portal but have not yet furnished the same, has been introduced, in view of Rule 10A of the CGST Rules 2017. Such taxpayers are required to update their Bank Account Details within 45 days of the first login henceforth. The taxpayers may login and update Bank Account details through Non-core amendment in the manner as specified in the below table. In case...

  Filing of Annual returns by composition tax payers – Negative Liability in GSTR-4   Composition taxpayers are reporting negative liability appearing in their GSTR-4  since FY 2019-20, taxpayers has to pay the liability through Form GST CMP-08 on quarterly basis while GSTR-4 Return is required to be filed on annual basis after end of a financial year. Why is  there  Negative Liability in GSTR-4? Taxpayers should fill up table 6 of GSTR-4 mandatorily. In case, there is no liability, the said table may be filled up with ‘0’ value. If no liability is declared in table 6, it is presumed that no liability is required to be paid, even though, taxpayer may have paid the liability through Form GST CMP-08. In such cases, liability paid through GST CMP-08 becomes excess tax paid and moves to Negative Liability Statement for utilization of same for subsequent tax period’s liability. Where did the tax payer go wrong? Liability paid through Form GST CMP-08 is au...

Date Extended for 15CA/CB again due to Income Tax portal problems Due to some issues with the Income Tax portal CBDT gi ving 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 .T he tax payer can submit manual Form 15 CA/CB to the authorised dealers.    

New functionality on GST Portal regarding Annual Aggregate Turnover (AATO) GSTN has implemented a new functionality on taxpayers'  dashboards with the following features: •The taxpayers can now see the exact Annual Aggregate  Turnover (AATO) for the previous FY, instead of just the two  slabs of Above or Upto Rs. 5 Cr. •The taxpayers can also see the Aggregate Turnover of the  current FY based on the returns filed till date. •The taxpayers have also now been provided with the facility  of turnover update in case taxpayers feel that the system  calculated turnover displayed on their dashboard varies from  the turnover as per their records. •This facility of turnover update shall be provided to all the  GSTINS registered on a common PAN. All the changes by  any of the GSTINS in their turnover shall be summed up for  computation of Annual Aggregate Turnover for each of the  GSTINS •The taxpayer can amend the turnover twice within a per...

  Income Tax benefits on Home Loan   Deduction on Home Loan A home loan should be taken by an individual for purchase or construction of house property and the construction of the house property should be completed within 5 years from the date of availing loan. The EMI comprises of Ø Principal Amount Ø Interest on Home loan Deduction Under Section 80 C-Principal Amount Under this section, an individual is entitled to tax deductions on the amount paid as repayment of the principal component on the housing loan. An amount up to Rs.1.50 lakh can be claimed as tax deductions under Section 80C. However, the tax benefit on the repayment of the principal amount can be claimed only after the house is constructed. The section does not allow deductions for the repayment of the principal part during the years the house was being constructed. Deduction Under Section 24-Interest paid on Home Loan Under Section 24 of the Income Tax Act, an individual can claim...