Representation for extending dates for furnishing belated/Revised Returns

Representation for extending dates for furnishing belated/Revised Returns

For filing a belated income tax return u/s 139(4) for the fiscal year 2019-20 (which was originally 31st March 2021 but was extended to 31st May 2021)

For the purpose of filing a Revised Return of Income Tax u/s 139(5) for the fiscal year 2019-20 (which was originally 31st March 2021 but was extended to 31st May 2021)

2. However, owing to the Corona pandemic, many taxpayers were unable to file their ITR for FY 2019-20 (First Year 2020-21) by May 31, 2021, despite their best efforts. The provision of such ITRs will aid in increased revenue collection, and taxpayers will be able to maintain regularity by ensuring that their returns are filed on a consistent basis.

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3. The CBDT has granted Corona patients the benefit of exemption for amounts received beginning in FY 2019-20 and ending on June 25, 2021, but the deadline for filing ITR/ Revised ITR has passed, and it is necessary to allow them to file their Return/ Revised ITR for AY 2020-21 so that they can benefit from the exemption.

Section 206AB introduces a higher levy of TDS on tax defaulters from 01st July 2021

4. Facility for filing ITR in response to Notice under Sec. 148: Please provide a facility on the new Income Tax Portal for filing Belated/ Revised ITRs as well as ITR in response to Notice under Sec. 148 for assessment years 2020-21 and earlier, as per amended provisions regarding the reopening of assessments with effect from April 1, 2021.

Tax Avoidance or Tax Planning or Tax Evasion or Tax Management – Understanding the terminologies!

Tax avoidance is one of the most common methods used by taxpayers, as they attempt to exploit loopholes in the tax law, which may exist in the form of a lack of proper jurisdiction to hear cases, a lack of proper stringent and vigil mechanisms for its implementation, or liberal penal provisions, or any other such loopholes, and this is noticed by taxpayers, and they tried to utilise such gaps, and therefore use legitimate mechanisms to reduce their own tax liability required to be paid.

For e.g: Using tax deductions to reduce business expenses and the resulting tax bill/ Protecting revenue from tax liability by establishing a proper employee retirement plan/ When a person transfers income from an asset without actually transferring the asset, the income is included in the transferor’s income.

As a result, while it is legal, it is also illegal, which is why it is also known as loopholes tax planning.

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Tax planning is the most commonly used method by taxpayers, in which individuals or businesses attempt to maximise the benefit of legal provisions in the form of deductions, exemptions, or any other mechanism found in the Income Tax Act of 1961, in order to reduce their respective tax liability, and this method of lowering tax liability is 100% safe.

Using various deductions authorised under Section 80 of the 1961 Act/ Investing in Special Economic Zones/ Investing in fixed deposits, mutual funds, provident funds, or any other funds where a tax exemption or rebate is provided or supplied either spontaneously or over time.

tax avoidance

Tax avoidance is defined as a totally criminal or illegal way of avoiding one’s tax duty in which all taxpayers, whether individuals, businesses, or corporations, have the primary goal of displaying less profit through different criminal tactics in order to reduce their tax responsibility, or they may also show higher expenditure in order to qualify for specific exemptions and so on

For example, showing false and fabricated books of accounts and financial statements/ inflation deductions without sufficient evidence/ claiming more and more expenditure/ illegally transferring assets/ hiding legal documents showing real income earned or generated and then claiming exemptions by showing less income/ transferring black money to foreign bank accounts such as Swiss accounts

Summary of CGST (Fourth Amendment) Rules, 2021

Tax management is essentially finance management for the express purpose of paying tax, and is thus a considerably broader word than tax planning, as the former’s main goal is to comply with the relevant income tax laws and other allied standards.

For example, avoiding prosecution or penalties by filing an income tax return on time, etc.

HR and Payroll Outsourcing Service

What is Payroll Outsourcing Service?

Payroll consists of different systems for calculating payments to workers. Due to their job with the organization, the total salary of each employee is to be determined. Payroll processing is the most reliable and most commonly used way to measure the employee’s overall payment. After calculation of all necessary deductions, such as PF, HRA, DA, etc.

The HR department shall process the total payment to be charged to workers. Each business is using a different payroll method in India. Various business or location-specific law is often extended to payroll calculations. Payroll consists of a number of non-payment work such as payslip generation, disbursal, taxation, etc.

payroll analytics
Below are all the measures that are part of the payroll process
1.Payroll Policies

In this stage, the company adheres to the policies of the company while producing the first output. Various rules, such as attendance policy, leave policy comes into effect. It is done to meet entirely with the company’s requirements.

2.Gathering and Confirmation of Inputs

Once the measures have been reviewed and confirmed. It is time to obtain input from the dedicated department. Various payment-related data are received in this phase.

payroll processing
Post Payroll Process

Post Payroll is the actual processing of payroll operations. It consists of separate deductions and final fees. The detailed structure of the post payroll process is given below.

1. Statutory deductions

In this stage, all statutory deductions, such as ESI, PF, TDS, are deducted from the wage. When all deductions have been properly confirmed, the actual amount of payment will be confirmed. This is one of the most critical measures to generate payroll. The business should clearly deduct all statutory compliance. It is therefore important to remind staff of all deductions.

2. Accounting

It is important to register everything in the company records before processing the payment. Both transactions and total payments to employees should be available to the company. For this, a separate payroll accounting department is used.

3. Final Pay-out

Based on the mode of payment, the company shall pay the final estimated amount to its employees. Many businesses give their workers a salary account. So, whether the company is doing it with checks, cash, or online transactions. The final payout should be given to the employees. This has become the whole payroll process in India. Many organizations are following the same mechanism as above.

payroll outsourcing service in bangalore
Benefits of hiring a payroll outsourcing company
1. Convenience

You can easily hire a separate payroll manager for the employees. But the outsourcing company is going to be more comfortable for you. You just have to give the required details to the company. When you’ve done so, you have to let them do their job. This is going to help you concentrate on your main operations.

2. Cost-Efficient

The total cost of starting up a payroll department is very high. It’s more than the expense of an outsourcing firm. So, it’s nice to use your precious money in a productive place. Most of the businesses are going for outsourcing companies. It’s because they know their impressive revenue benefits.

3. Time-Saving

When you hired one of India’s payroll outsourcing company. It’s going to help you save time and money. Instead of wasting your workforce on payroll processing work. You can use this in some other revenue-generating operation. It will help you make the best of your time and money in productive ways.

4. Accuracy

When these businesses prepare their employees to perform payroll jobs, this decreases the risk of error. Payroll companies almost often send their work reports when they complete their Job. You can easily observe the total work they have completed.

5. Safe and Reliable

Many payroll outsourcing firms have their own payroll software. It offers comfort to its clients and employees. It’s easy for employees to track their pay history with this app. Through this, they will review their payslips and deductions. It Improves the reliability of the business.

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