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.

ET Financial Inclusion Summit: For a digital India, rules should aim at desired outcomes

ET Financial Inclusion Summit: For a digital India, rules should aim at desired outcomes

Due to the Covid-19 pandemic and periods of forced self-isolation, digital payments have become the default option for a significant portion of the population.

According to Nikhil Sahni, Mastercard’s division president for South Asia,

The number and value of paper-based instruments such as checks have decreased in the last financial year, while retail digital payments lead by UPI-based transactions have improved.

“In terms of digital payments, internet access, smartphone ownership, and provision for Jan Dhan accounts, which the prime minister himself envisioned, have all been milestones in the right direction.

Paper instruments such as checks saw a 35 percent drop in volume and a 28 percent drop in value in the previous fiscal year. At the same time, retail digital payments increased by 16 percent, with UPI-based payments doubling.

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“Spending on digital infrastructure by the government at a time when private consumption is fundamentally declining would promote economic development and have a multiplier effect, making economic activity considerably more efficient and environmentally sustainable.

To make payments across devices without fear of fraud.

The government must establish a regulatory framework that allows for platform interoperability, allowing people and businesses to make payments across devices without fear of fraud.

Regulations should aim for desirable outcomes regardless of who delivers them, and establish circumstances for competition and collaboration where necessary. We need data protection regulations that encourage ethical behavior while not penalizing individuals or gamers to the detriment of the entire community,” he stated.

GST’s Applicability to the Reverse Charge Mechanism for Service Imports

After offering digital payments to 1 billion people between 2014 and 2020, Mastercard wants to convert 1 billion people and businesses around the world in the next four years.

“Our commitment to financial inclusion is part of a larger social commitment…

Mastercard is excited to work with the government and other stakeholders to make India truly digital,” says the company.

Today’s Business Update

Certicom Today’s Update

1. If the PF amount had been deposited within the permissible grace period, no disallowance can be made u/s 43B: In the case of Zyg Pharma Pvt. Ltd. Vs. DCIT has held as under:

  1. Perusal of assessment order showed that AO himself had admitted that assessee had deposited employee’s contribution to provident fund account within the grace period.
  2. As the amount had been deposited within the permissible grace period, no reason was found for disallowance
  3. AO was directed to allow the assessee’s claim

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2. Calcutta HC imposes an interim stay on TDS U/S 194N :

Case: Apeejay Tea Ltd. Anr. Vs. Union of India & Ors. (WPA 10856 of 2021)

3. CBIC introduced the ‘Turant – Faceless Assessment’ Brings in transparency, less human intervention; objectives, challenges.

4. Be cautious before using Google pay. Any payment-related issues or frauds emanating due to Google pay will be outside the purview of RBI.

GST officers unearth over Rs 35,000 crore fraud in 2020-21, arrest 426 persons

5. CBDT has notified the new rules regarding computation of short-term capital gains (STCG) and written down value (WDV) where depreciation on goodwill has been obtained, potentially increasing tax liabilities on firms that have undergone mergers or acquisitions in recent years.