Section 206C(1H) of the Income Tax Act 1961 at a Glance

Section 206C(1H) of the Income Tax Act 1961 at a Glance

1.The provisions of this sections are applicable with effect from 1st October, 2020.

The section provides that in case of sale of goods of the value or aggregate of such value more than Rs 50 lakhs in any PY, (other than the goods being exported out of India or goods covered in 206C (1) or 206C(1F) or 206C(1G)] seller shall collect TCS from the buyer @0.1% of the sale consideration in excess of Rs 50 lakhs.

SPECIAL POINTS TO BE REMEMBERED

If the buyer (collectee) does not furnish PAN or Aadhar the TCS rate shall be 1%.

Since TCS is to be collected on the receipt amount, the section applies on all sale consideration including any advance amount received on or after 1st Oct 2020 irrespective of the fact that the sale was carried out before 1st Oct or not.

The calculation of the amount of sales consideration for ascertaining the eligibility for collection of tax at source as regards to Rs 50 lakhs shall be computed from 1st April 2020.

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NON-APPLICABILITY

Sale of services as this section applies to sale of goods only.

Any consideration for fuel supplied to non-resident airlines at airports in India.

EXPLANATION TO THE WORDS

SELLER: A person whose Turnover or Gross Receipts from the business carried on by him more than Rs 10 Crore in last Previous year.

BUYER: A person who purchases any goods, but does not include

(a) Central Govt, State Govt, embassy, High Commission, Legation, commission, consulate, trade representation of a foreign State, Local Authority

(b) A person importing goods into India or any other notified person.

EXAMPLES

Mr. Shyam has Turnover Rs 20Cr in last PY. He Sold goods to Mr. Ram up to 30/09/20 worth Rs 40 Lakhs and Rs 20 Lakhs from 1/10/21 to 31/03/21.

TCS applicable on Rs 10 Lakhs @ 0.1% i.e., Rs 1000/-

Mr. Shyam has Turnover Rs 30Cr in last PY. He Sold goods to Ram Ltd. up to 30/09/20 worth Rs 46 Lakhs and Rs 25 Lakhs from 1/10/21 to 31/03/21.

TCS applicable on Rs 21 Lakhs @ 0.1% i.e., Rs 2100/-

Mr. Ghanshyam has Turnover Rs 30Cr in last PY. He Sold goods to Punjab Govt up to 30/09/20 worth Rs 46 Lakhs and Rs 25 Lakhs from 1/10/21 to 31/03/21.

TCS not applicable as section does not apply to a buyer being state govt.

Haryana Govt has Turnover Rs 30Cr in last PY. He Sold goods to Ram Ltd. upto 30/09/20 worth Rs18 Lakhs and Rs 85 Lakhs from 1/10/21 to 31/03/21.

TCS applicable on Rs 53 Lakhs @ 0.1% i.e., Rs 5300/-

Mr. Ramesh has Turnover Rs 10Cr in last PY. He Sold goods to Ram Ltd. up to 30/09/20 worth Rs 46 Lakhs and Rs 25 Lakhs from 1/10/21 to 31/03/21.

TCS NOT applicable as Turnover In last PY is not more than Rs 10 Crore.

ITR or Income Tax Return Filing Deadline for FY21 (AY 2021-22) Extended.

ITR or Income Tax Return Filing Deadline for FY21 (AY 2021-22) Extended.

In a major relief to taxpayers, the Central Board of Direct Taxes (CBDT) on Thursday extended the deadline for filing income-tax returns (ITR) for FY 2020-21 till September 30. All you need to know

 

The Central Board of Direct Taxes (CBDT) announced on Thursday that the deadline for filing income tax returns (ITR) for FY 2020-21 (AY 2021-22) has been extended to September 30. The official statement stated, “The Central Board of Direct Taxes, in the exercise of its competence under section 119 of the Income-tax Act, 1961, provides relaxation…” The decision was made in the aftermath of the country’s second coronavirus pandemic. Earlier this year, the Internal Revenue Service (IRS) extended numerous tax deadlines.

“As the second wave of COVID-19 rages through multiple states in India, the extension of due dates for different compliances for employers, as well as the extension of tax filing due dates for taxpayers, is critical in the current circumstances,” stated Archit Gupta, founder and CEO of ClearTax.

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Check out the new tax deadlines for FY 2020-21 (AY 2021-22):

1) For regular taxpayers, the due date for filing an income tax return for Assessment Year 2021-22 has been moved from July 31, 2021 to September 30, 2021.

2) Audited taxpayers have until November 30 to file their income tax returns. The previous date was October 31.

3) The deadline for submitting the Tax Audit Report has been extended from September 30 to October 31, according to a statement from the CBDT.

4) The deadline for filing a late/revised income tax return has been moved from December 31, 2021 to January 31, 2022.



5) The deadline for submitting the Transfer Pricing Study Report has been extended to November 30.

6) The deadline for SFTs has been extended from May 31, 2021 to June 30, 2021.

7) Statement of Reportable Account – the deadline has been extended from May 31 to June 30.

8) The deadline for filing the TDS Statement for the fourth quarter of FY 2020-21 has been extended to June 30. Previously, the deadline for filing TDS was May 31.

9) The deadline for submitting Form 16 has been pushed back a month to July 15. It had been June 15 the day before.

“Various due date extensions will ease compliance burdens for businesses struggling in the current economic downturn. This also underscores the importance of firms moving their tax compliance completely online.”

The Income Tax Department announced on Wednesday that on June 7, it will launch a new e-filing site at http://incometax.gov.in. From June 1 to June 6, the present platform would be unavailable to taxpayers for six days, according to a statement from Income Tax India. “The new e-filing portal is designed to provide taxpayers with ease as well as a modern, seamless experience. It is another step by the CBDT to make compliance easier for its taxpayers and other stakeholders,” it continued.

So far this fiscal year, the tax department has issued over Rs 24,792 crore in refunds to over 15 lakh taxpayers. The Income Tax Department tweeted, “CBDT issues refunds of about Rs 24,792 crore to more than 15 lakh taxpayers between 1st April 2021 and 17th May 2021.” In all, Rs 7,458 crore in personal income tax refunds were issued in approximately 14.98 lakh cases. 43,661 taxpayers received Rs 17,334 crore in corporate tax refunds.

Asian Development Bank (ADB) annual funding to India hits record high

Last year, the Asian Development Bank (ADB) increased its overall yearly funding to India to $4.27 billion, thanks to Covid-19 support. The ADB stated in a statement on Friday that this was the greatest yearly lending commitment to the country since the bank’s lending operations began in 1986.

According to the announcement, the total sum includes $3.92 billion in sovereign financing for 13 projects, including $1.8 billion in pandemic-related support and a $356 million commitment through non-sovereign activities.

As part of its pandemic assistance to India, the Asian Development Bank (ADB) offered emergency assistance to contain the virus and implement social protection measures to help the poor and vulnerable.

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“ADB stands ready to provide more resources to address India’s many Covid-19-related challenges in the future, including funds to expedite the country’s ongoing vaccination programme and build the health system’s resilience against future shocks, as well as supplementary support to protect small businesses, underpin education, and underpin social protection,” said Takeo Konishi, ADB Country Director.

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Aside from Covid-19 aid, the international lender increased its funding for India’s infrastructure development by assisting with energy, transportation, urban development, and public sector management.

This includes $500 million for the construction of an 82-kilometer high-speed Delhi-Meerut RRT system corridor, as well as energy sector loans to boost distribution networks in Maharashtra, Karnataka, Uttar Pradesh, and Meghalaya, as well as a 120-megawatt hydroelectric power plant in Assam.