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).

7 steps to a simple income tax return filing

7 steps to filing your income-tax returns smoothly

For individual taxpayers and assessees other than those whose accounts are due for audit, the CBDT has extended the deadline to file FY 2020-21 income tax returns (ITRs) to December 31, 2021, from the previously extended deadline of September 30, 2021.

Returns must be filed meticulously to ensure accuracy and completeness. Any inconsistencies or holes in reporting can result in questions or tax notices from the IRS.

The entire procedure of filing returns takes place online. Furthermore, due to the demand of additional information as well as the changes in processes in the new income-tax portal, an individual may make mistakes. It’s also possible that the process will take longer than usual.

In light of the foregoing, the following are some typical errors that people should avoid while filing their ITR.

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Using correct ITR Form

The taxpayer must utilise the correct ITR form when filing the ITR. If a taxpayer files an ITR on the incorrect form, the tax department may issue a notice of defective return to the taxpayer under section 139(9) of the Act. In this case, the instructions on the form given by the tax department should be consulted in order to decide the relevant form to use depending on residency, kind of income, number of housing properties, and other factors.

For example, anyone with taxable income of less than Rs 50,00,000 (Rupees fifty lakhs) can use Form ITR-1 as long as he does not have any income from “Capital gains” or “Profits and gains of business or profession.” If you are a director of a firm or own unlisted stock, or if you own more than one residence or have agricultural income over Rs 5,000, you cannot utilise Form ITR 1.

Mentioning correct basic details

Individuals should make certain that they have the correct PAN, Aadhaar, and TAN numbers, as well as that their residential status is accurately established and stated. They should also double-check all of the information on the ITR Form before submitting the tax return.

Mention correct communication details

An individual must include accurate and up-to-date contact information, such as an email address, address, and phone number. Because the IRS has shifted to faceless assessments, all correspondence will be sent to the email address listed on the tax return.

Report all sources of income

Based on his residency status, a taxpayer must record all sources of income, including interest on fixed deposits (FDs), capital gains from the sale of mutual funds, including equity shares, and any other asset. Dividend income becomes taxable in FY 2020-21, and taxes must be paid accordingly.

All international assets and income, including overseas pensions, ESOPs, foreign bank accounts, and any benefits claimed under the Double Taxation Avoidance Agreements, should be reported by residents and ordinarily resident individuals.

Save your Taxes via Hindu Undivided Family (HUF)

Reconciliation of income in Form 26AS

Individuals should double-check that the income recorded on Form 26AS matches the income reported on their ITR. Any discrepancy will result in the department issuing a tax enquiry. For proper return processing, the taxpayer should ensure that the tax paid facts contained in Form 26AS are appropriately mentioned in Form ITR.

Reporting income from the previous employer

If you changed employment during FY 2020-21, you must declare income from your old employer as well as income from your present employer. Additionally, the standard deduction should be limited to a maximum of Rs 50,000.

Taxpayer should ensure that active and precise bank account details (i.e. account number, IFSC code, name of the bank, etc.) are stated in case of a tax refund arising from an ITR to enable faster arrival of the refund to the taxpayer’s bank account.

E-verify ITR

Only the e-verification of the ITR filed completes the ITR filing process. To e-verify a tax return, you can use Aadhaar OTP, Net banking, Demat account, bank ATM, or just email the signed physical copy of Form ITR-V to CPC Bangalore.

To facilitate smooth e-verification of returns filed, the taxpayer must ensure that PAN and Aadhaar are linked (the deadline for connection has been extended to March 31, 2022). The Indian mobile number must also be active. Tax authorities consider the return to have been filed once the e-verification is completed.

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.