New CBDT rules for Income tax

CBDT notified New rules for Income tax

1. Central Board of Direct Taxes has notified a new rule for computation of fair market value of capital assets in a slump sale. As per the amendment made to the income tax rules, the new Rule 11UAE under section 50B has given two formulae for calculation and has stated that the fair market value will be higher among the two values.

[pt_view id=”064542bwhr”]

2. When to say NO to Cash transaction in Business

• Expenditure above Rs. 10000 – Disallowance u/s 40A
• No health insurance in cash except for preventive health checkup
• Donation above Rs. 2000
• Prohibition on Acceptance and Repayment on cash loan, Deposit, etc. above Rs. 20000
• Receipt of Cash above Rs. 2,00,000
• Disallowance on Capital expenditure and Depreciation above Rs.10,000
• Disallowance of scientific Research above Rs. 2000
• No cash donation to Political parties or Electoral trust

3. GST Amensty Scheme Announced For Pending Return From July 17 to April 21 :

• If you don’t have tax liability then late fee 500.
• if you have tax liability then late fee 1000.
• But dealer has to file pending return 3B in between 1st June to 31st Aug.

When does EPF become taxable?

4. Late Fees for Future Return:-

• if the dealer doesn’t have Output Tax then 500 Per Return.
• if last year sales are 1.5 Cr then is 2000 Late Fees Per Return
• if last year sales are 1.5 Cr to 5 Cr then late fees 5000.
• if last year sales are more than 5 Cr than 10000.
• if Composition doesn’t have tax liability then 500 and if have than 2000 for GSTR 4.
• for GSTR 7 it’s 50 Per day and a maximum of 2000.
Note – Amount is for both CGST and SGST combined.

Today’s Updates:Due Date for Deposit of Advance Income Tax

Today’s Updates:Due Date for Deposit of Advance Income Tax

  • Changes in New Income Tax Portal from 7 June, Pay Tax via Credit Card. Launch of new e-filing Portal of the Income Tax Department – Non-availability of e-filing services from 01.06.2021 to 06.06.2021.
  • The new e-filing portal is aimed at providing taxpayer convenience and a modern, seamless experience to taxpayers: New taxpayer friendly portal integrated with immediate processing of Income Tax Returns (ITRs) to issue quick refunds to taxpayers;
  • Govt Integrates E-way Bill with FasTag, RFID; GST Officers to Have Real-time Data of CVs (GST officers have been armed with real-time data of commercial vehicle movement on highways with the integration of the e-way bill (EWB) system with FasTag and RFID, a move which will help in live vigilance of such vehicles and check GST evasion)
  • Ministry of Finance had issued Office Memorandum dated May 24, 2021 regarding Constitution of Group of Ministers (GoM) on Casinos, Race Courses and Online Gaming. The terms of reference shall be as follows:
  • To examine the issue of valuation of services. Taxability of certain transactions in a casino, with reference to the current legal provisions and orders of Courts on related matters. To examine whether any change is required better means of valuation of these services in the legal provisions to adopt any better means of valuation of these services. To examine the administration of such valuation provision if an alternative means of valuation is recommended.
  • Due Date for Deposit of Advance Income Tax is 15-06-2021. You are requested to please deposit 15% for 1st instalment on or before 15-06-2021* to avoid interest on income tax not allowable as expense, However Bank interest paid on advance tax is allowable as expense.
  • Last date for linking PAN with Aadhar extended from 31.3.2021 to 30.6.2021.
  • Ensure Aadhar seeding for all PF members as wef 1.6.21 ECR filing only for those whose Aadhaar numbers are seeded & verified with UANs.
  • Union Cabinet approves Model Tenancy Act for circulation to the States/Union Territories for adoption
  • The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved the Model Tenancy Act for circulation to all States / Union Territories for adaptation by way of enacting fresh legislation or amending existing rental laws suitably. It will help overhaul the legal framework with respect to rental housing across the country, which would help spur its overall growth.
  • 30.6.21 is extended due date to file TDS Statements in 24Q, 26Q & 27Q for March quarter of 2021. TDS Certificates can be issued by 15.7.21.
  • EPFO allows its members to avail second COVID-19 advance. Under this provision, non-refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75% of the amount standing to member's credit in the EPF account, whichever is less, is provided. Members can apply for lesser amount also.

GDP grows 1.6% in Q4, but contracts 7.3% in FY21

GDP grows 1.6% in Q4, but contracts 7.3% in FY21

India’s gross domestic product (GDP) increased by 1.6% in the January-March quarter of fiscal year 2020-21, but contracted by 7.3% for the entire fiscal year, according to government figures released on Monday.

Since 1979-80, when the Indian economy shrank by 5.2%, this is the first full-year contraction in the last four decades. This is also India’s second consecutive quarter of growth since emerging from a rare recession.

India’s GDP increased by 3% in the fourth quarter of FY20, bringing the overall growth rate to 4%, an 11-year low.

The manufacturing sector’s gross value added (GVA) growth surged to 6.9% in the fourth quarter of 2020-21, compared to a decrease of 4.2% a year ago, according to statistics from the National Statistical Office.

GVA growth in the agricultural industry was 3.1% in 2019-20, compared to 6.8% in the previous year.

GVA in the construction sector increased by 14.5 %, up from 0.7 % previously. The mining industry shrank by 5.7%, compared to 0.9% a year ago.

[pt_view id=”c8bb8e9z6d”]

In the fourth quarter, the electricity, gas, water supply, and other utility services segment expanded by 9.1%, compared to 2.6% growth a year ago.

Similarly, after growing by 5.7% in the previous quarter, trade, hotel, transportation, communication, and broadcasting services shrank by 2.3% in the fourth quarter.

Financial, real estate, and professional services expanded by 5.4 percent in the fourth quarter of FY21, up from 4.9 percent in the previous quarter.

Growth in public administration, defence, and other services fell to 2.3 percent in the current quarter, down from 9.6 percent a year ago.

“Real GDP, or Gross Domestic Product (GDP) at Constant (2011-12) Prices, is now expected to reach 135.13 trillion in 2020-21, compared to 145.69 trillion in the First Revised Estimate of GDP for 2019-20, announced on January 29, 2021. GDP growth in 2020-21 is expected to be -7.3 percent, down from 4.0 percent in 2019-20 “In a statement, the Ministry of Statistics and Programme Implementation said.

gdp

“GDP at constant (2011-12) prices is anticipated to be Rs 38.96 trillion in Q4 2020-21, up from Rs 38.33 trillion in Q4 2019-20, indicating a 1.6 percent increase.”

The government’s efforts to stem the pandemic’s spread, according to the statement, have had an impact on economic activity as well as data collection procedures.
The economy will need to grow by 10-11 percent in the current fiscal year 2021-22 to regain its Rs 145 trillion size, but the outbreak of the second wave of COVID infections last month has disrupted economic activity, and many analysts believe the GDP will not reach double digits despite the low base.

GDP is calculated as the sum of gross value added (GVA) at basic prices plus all product taxes minus all product subsidies. Non-GST and GST revenue are included in the overall tax revenue used to calculate GDP.

The GST compensation amount for FY22 at the Centre should be greater than the anticipated Rs 1.58 lakh crore: Opp-ruled states

As of Monday, India had registered 28 million COVID-19 infections, second only to the United States, and 329,100 deaths, albeit the rate of increase, has slowed.

Manufacturing, construction and finance, real estate, and other sectors showed signs of improvement in Q4FY21, indicating that the economy is on the mend for FY22. However, growth may be stifled if the second wave results in the closure of the services sector in particular.