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.

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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.

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.

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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.

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“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.

Sebi is being nudged by the Ministry of Corporate Affairs on startup listing laws.

The Securities and Exchange Board of India (Sebi) eased the eligibility and listing requirements for the Innovators Growth Platform (IGP), a separate exchange for new-age startups, on Thursday.

Currently, a company’s 25% pre-issue capital must be owned for at least two years by an institutional investor and other major investors before it can be listed on IGP. This requirement has been reduced to only one year by the Sebi.

Additionally, ‘accredited investors’—individuals with a net worth of Rs 5 crore—will be eligible to hold up to 25% of pre-issue shareholding for the above eligibility criteria. Previously, a limit of 10% of accredited investors’ pre-issue holdings was considered for the 25% pre-issue eligibility threshold.

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Companies with superior voting rights were also permitted to list on IGP by the Sebi. In addition, the open bid trigger for companies listed on this website has been reduced from 26% to 49%. Sebi has made it simple for companies to delist or move to the mainboard, which is either the NSE or the BSE.

IGP was launched in 2019 with the aim of offering a listing opportunity for technology-oriented startups or companies with early-stage investors with a far more comfortable framework than the mainboard. There are currently no listings on the web.

sebi

The new Sebi relaxations, according to experts, may help the IGP platform take off.

“Several major improvements to the IGP platform have been proposed. This should make it easier for start-ups to collect funds,” said Rajesh Thakkar, partner and leader of BDO India’s Transaction Tax practise.

In the meantime, the Sebi board has tweaked the delisting rules. Promoters will have to reveal their plans to delist in the future. In addition, independent directors would be required to include a reasoned recommendation on the delisting request to the minority shareholders of a delisting-bound company. Sebi has also improved the efficiency of different timelines associated with delisting.

The Securities and Exchange Board of India (Sebi) has also eased the rules on promoter shareholding reclassification. Promoters with less than 1% ownership and no “power” would not be expected to obtain shareholder approval until being reclassified as ordinary shareholders.In order to make the process more effective, the time between the board meeting and the shareholders meeting has been shortened.