Realtime Certicom updates

Certicom Latest Updates

1. Income Tax Attachment of Bank accounts are not permitted after expiry of statutory time limit Case Name : Gobindo Das Appeal Number : Ors. Vs Union of India & Date of Judgement/Order : Ors. (Calcutta High Cou

2. SBI has launched an offer under which taxpayers can file ITR for free of cost, the public sector lender has stated. To file the ITR, taxpayers would require a few documents. These are PAN card, Aadhaar card, Form-16, Tax deduction details, interest income certificates, and investment proofs for tax saving.

3. GST Tax reforms are best implemented when revenue buoyancy is increasing. Considering this, the setting up of a seven-member Ministerial Panel for rationalising the GST rate structure chaired by the CM of Karnataka does not come a day sooner.

The economy has been registering a steady recovery, and with the settled technology platform tax compliance in GST has been showing improvements (revenue collection from GST reached Rs 1.17 trillion in September, the highest in the last five months).

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4. GST: Supply of services even by unincorporated association to its members for consideration is supplied under GST. Case Name: In re Gujarat Hira Bourse (GST AAR Gujarat) Appeal Number: Advance Ruling No. GUJ/GAAR/R/52/2021 Date of Judgement/Order: 15/09/2021

5. RBI suspended its version of quantitative easing, signalling the start of tapering pandemic-era stimulus measures as an economic recovery takes hold. There is no need for further bond-buying, RBI Governor Shaktikanta Das while stressing the step is not a reversal of its accommodative policy stance.

6. OECD: Multinational corporations will be subject to a minimum tax of 15% from 2023, in a major reform of the international tax system finalized by the OECD on Friday. The framework, backed by 136 countries, including India, seeks to ensure a fair share of taxes for countries where multinationals and global digital companies such as Netflix, Google earn revenues from.

Extended due dates of Income Tax Return and Tax Audit

7. CBDT have no power to Enlarge the scope of MCI regulation. Case Name: Evolutis India Private Limited Vs ACIT (ITAT Mumbai) Appeal Number: ITA No. 4923/MUM/2018 Date of Judgement/Order: 23/09/2021

8. RBI increases IMPS Limit per transaction from Rs 2 lacs to Rs 5 lacs. Individual banks may take some time to update their systems wef 8.10.2021.

9. RBI bi-monthly meet it was decided that Repo rate to remain unchanged at 4%. Reverse Repo rate to remain unchanged at 3.35%. The MPC voted 5:1 to maintain an accommodative stance.

10. RBI: Reserve Bank has today (October 08, 2021) filed applications for initiation of corporate insolvency resolution process against Srei Infrastructure Finance Limited and Srei Equipment Finance Limited under Section 227 read with clause (zk) of sub-section (2) of Section 239 of the Insolvency and Bankruptcy Code (IBC).

Income Tax Return: Why you shouldn’t wait for the extended due date to file ITR

Why you shouldn’t wait for the extended due date to file ITR

Due to concerns about technological issues in the new Income Tax Portal, the deadline for reporting ITR has been extended to provide relief to taxpayers in the wake of the Covid-19 outbreak.

Due to technological issues in the new Income Tax Portal, the due date for filing Income Tax Return (ITR) has been prolonged in this Assessment Year (AY 2021-22), first to September 30, 2021, and subsequently to December 31, 2021, as it was in the Covid-hit previous Assessment Year (AY 2020-21).

“The Central Government has extended the deadline for filing income tax returns for the financial year 2020-21 to provide relief to taxpayers, amid the Covid-19 pandemic, and due to concerns and technical glitches in the Income Tax website, regarding filing and verification of returns, among other things,” said Kapil Rana, Founder & Chairman, HostBooks Ltd.

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For late filing and payment of taxes, the taxpayer must pay interest. Interest is charged under section 234A if an ITR is not filed on time.

“If the taxpayer has not paid advance tax or has paid less than 90% of the tax burden, he or she will be required to pay interest at the rate of 1% every month or part of the month from April until the date of payment of tax,” he added.

Interest on Taxes Due

“Under section 208, a person is liable to pay advance tax if his tax liability for the year is Rs 10,000 or more,” Rana added, referring to the interest on tax payable. Even if you are late in filing your ITR, it is preferable to pay the advance tax as soon as possible.

In terms of advance tax payment, an individual who is a resident of India and has income other than income from business and profession is not obligated to pay tax in advance, and hence interest under section 234B does not apply to such a person.”

“In cases where the amount of tax on total income after deduction of advance tax, TDS/TCS, any tax relief allowed u/s 89, 90, 90A & 91, and alternate minimum tax credit exceeds Rs 1 lakh, interest under section 234A will be applicable because there are no issues with tax payment and the website is working seamlessly,” he added.

Fee for being late

In addition to the interest on the tax owed, failure to pay by the due date incurs a late fee under section 234F of the Income Tax Act.

  • “If the return is submitted beyond the due date, late fines of Rs 5,000 would be charged. The cost will be Rs 1,000 if the overall income does not exceed Rs 5 lakh,” Rana explained.

  • However, if you miss a due date up until December 31 of an Assessment Year, you’ll be charged Rs 5,000, and if you miss it after that, you’ll be charged Rs 10,000.

  • So, if a taxpayer misses the extended deadline of December 31, 2021, he or she will be fined twice as much, or Rs 10,000.

Latest Tax Updates

Latest Tax Updates – Certicom

1. Income Tax Return (ITR) filing for  Financial Year 2020-2021 has started. 30.09.2021 is the Last date for Income Tax Return filing for Assessment Year 2021-22 (Financial Year 2020-21).

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2. Benefits of Income Tax Return (ITR) filing:

a) Claiming Tax Refund
b) Loans processing gets easier
c) Credit cards processing gets easier
d) Visa processing gets faster
e) Set off & Carry forward of losses
f) Serves as proof of income
g) Serves as address proof
h) Buying a high life insurance cover
i) Helpful for those with small or nil income
j) Proof of accumulated earnings over the years
k) Avoiding potential Income Tax notices for non-filing of ITRs

Digital payments up 30.2% in FY21: According to RBI data

3. Indian investment in cryptocurrencies grew from $923 million in April 2020 to nearly $ 6.6 billion in May 2021. The crypto investment by Indians has grown despite no clear regulation on this from the RBI or the Government. The RBI had tried to impose a kind of ban in 2018 by restricting banking facilities to crypto exchanges, which was later ruled out by the Supreme Court.

4. Ministry of Corporate Affairs has recently mandate One Person Company (OPC) and Small Company vide notification dated 5th March 2021 to file its annual return from the financial year 2020-2021 onward in Form No: MGT-7A under Section 92 of the Companies Act, 2013. This action is taken by MCA for giving clarity and reducing the burden of Small Companies and OPC.