THE CBDT AMENDS RULE 6G AND REVISES TAX AUDIT FORM 3CD

The CBDT has updated Tax Audit Form 3CD and made changes to Rule 6G.

The Central Board of Direct Taxes [CBDT] has amended Rule 6G and Tax Audit Form [Form 3CD]. According to the notification, the assessee may now revise form 3CD if a recalculation of disallowance under section 40 or section 43B is needed.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 1st April 2021
(INCOME-TAX)

246 G.S.R. (E). –– The Central Board of Direct Taxes hereby makes the following rules to amend the Income-tax Rules, 1962, in the exercise of the powers conferred by section 44AB read with section 295 of the Income-tax Act (43 of 1961):

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1. A brief title and introduction.–

(1)The Income-tax (eighth Amendment) Rules, 2021 can be used to refer to these regulations.
(2) They will take effect on the day they are published in the Official Gazette.

The Income-tax Rules of 1962 state that:

(a) After sub-rule (2) in rule 6G, the following sub-rule shall be inserted:

“(3) The person may revise the report of audit furnished under this rule by obtaining a revised report of audit from an accountant, duly signed and checked by such accountant, and furnishing it before the end of the relevant assessment year for which the report pertains, if there is payment by such person after furnishing the report under subrules (1) and (2) that necessitates a recalculation

(b) in Appendix II, in Form 3CD,-

I in PART –A, clause 8A shall be replaced by the following clause: – “8A “Has the assessee chosen to be taxed under section 115BA/115BAA/115BAB/115BAC/115BAD?

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(ii) in PART-B, the following clause shall be substituted for clause 17:

“17. Where any land or building, or both, has been transferred for a consideration less than the value adopted, assessed, or assessable by any authority of a State Government referred to in section 43CAor 50C during the previous year, please report it.

audit form

(iii) The following sub-clauses shall be substituted for sub-clauses (ca) and (cb) in clause 18, namely:

“(ca) Written down value adjustment made under section 115BAC/115BAD (for the assessment year 2021-2022 only)……

(cb) Adjustment to the written down value of an intangible asset due to the exclusion of the value of a company or profession’s goodwill…..

(cc) Wrongly written down value…….”;

(iv) in clause 32, the following sub-clause shall be substituted for sub-clause (a):

(a) To the extent practicable, specifics of the carried forward loss or depreciation allowance, as follows:

audit forms

*Take the assessed depreciation if the assessed depreciation is less and there is no appeal pending.

To be completed only for the evaluation year 2021-2022.”

Clause 36 is to be omitted.

Note: The principal rules were first published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) on March 26, 1962, and were last amended on March 31, 2021, by notification number G.S.R. 242 (E).

[Notification No. 28 /2021/F. No 370142/9/2018-TPL]
ANKIT JAIN, Under Secy. (Tax Policy Legislation)

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Proposals made amid 31st Meeting of the GST Council

KEY POINTS:

1. Yearly Return due date additionally broadened:

The due date for outfitting the yearly returns (GSTR 9 and 9A) and compromise explanation (9C) for the FY 2017 – 2018 further stretched out till 30th June 2019.

2. Late charge waiver:

Late charge will be totally postponed for all citizens in the event that FORM GSTR-1, FORM GSTR-3B &FORM GSTR-4 for the months/quarters July, 2017 to September, 2018, are outfitted after 22.12.2018 however prior to 31.03.2019.

3. E-way bill:

Citizens who have not documented the profits for two back to back assessment periods will be confined from producing e-way charges.

4. Time limit stretched out for ITC on 2017-18 Invoices:

ITC in connection to solicitations issued by the provider amid FY 2017-18 might be benefited by the beneficiary till the due date for outfitting of FORM GSTR-3B for the long stretch of March, 2019, subject to indicated conditions.

5. New Return documenting framework on preliminary premise:

The new return documenting framework will be presented on a preliminary premise from 01.04.2019 and on compulsory premise from 01.07.2019.

6. Single Cash Ledger:

There would be a solitary money record for each duty head.

7. Single Authority for Disbursing Refund:

A plan of single expert for payment of the discount sum endorsed by either the Center or the State assess specialists would be actualized on pilot premise.

 

 

8.Changes in Annual Return:

– Amendment of headings – supplies – ‘made amid the year’ and not ‘as proclaimed in returns recorded amid the year’

– All profits in FORM GSTR-1&FORM GSTR-3B to be documented before recording of GSTR 9 arrangement

– HSN code might be announced just for internal supplies esteem 10% or a greater amount of aggregate internal

– Additional installments, assuming any, required, should be possible through FORM GST DRC-03 just in real money

– ITC can’t be profited through FORM GSTR-9 and FORM GSTR-9C

– All solicitations relating to past FY (independent of month in which such receipt is accounted for in FORM GSTR-1) would be auto-populated in FORM GSTR-9

– Value of “non-GST supply” will likewise incorporate the estimation of “no supply” and might be accounted for in Table 5D, 5E and 5F of FORM GSTR-9

– Verification by citizen who is transferring compromise explanation would be incorporated into FORM GSTR-9C.

9.Due date augmentation:

– FORM GSTR-8 by internet business administrators for the long periods of October, November and December, 2018 will be stretched out till 31.01.2019.

– FORM GST ITC-04 for the period July 2017 to December 2018 will be reached out till 31.03.2019.

The essential Notifications/Circulars for executing the above proposals of the GST Council will be issued right away.

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4 Tax sparing decisions for higher income and better future wealth

Financial planning is crucial for tax savings. Planning your finances would not only help you understand your income tax liability, but also check your expenses and maximize your returns on investment. In this way, you could invest in a variety of tax saving instruments and ensure that your investments maintain a steady return even in the wake of constantly fluctuating financial markets.

Overall, if you want higher incomes and better wealth in the future, plan your finances as soon as possible. To help, here’s our selection of the top four tax saving decisions you have to make.

1. Invest in a Unit Linked Insurance Plans (ULIPs):

In a single investment plan, ULIPs offer twin benefits of insurance and investment. Depending on your risk profile, age, income and financial goals, you can allocate the invested amount to a variety of equity and debt funds with ULIPs. In addition, you can also use life insurance cover during the policy period. One of the most important features of ULIP plans is that you can track your investments regularly by evaluating your funds ‘ net asset value (NAV). Your beneficiary would also receive the higher of the two values: the amount guaranteed or the fund value accumulated in the event of any eventuality. When we talk about the tax saving aspect of ULIPs, the premium paid is eligible for tax deductions in accordance with Article 80C, subject to a maximum of Rs 1.5 lakhs per year. In addition, the maturity benefits received by your beneficiary are exempted under the provisions of Section 10(10D). This makes ULIP one of the best tax saving tools that can help you to create a substantial corpus in the future and protect your family from unprecedented life situations.

2. Maximise Your Investments through Equity Linked Saving Schemes (ELSS):

ELSS, a type of mutual fund, was explicitly created to save taxes. Since ELSS investment is allocated only to equity funds, it is a slightly risky option but also gives higher returns (* returns are subject to market conditions). In addition, the premium invested in ELSS can be deducted from taxes up to Rs. 1.5 lakh, pursuant to Section 80C, while any long – term gains you gain at the time of exit will not incur any Long – Term Capital Gains Tax (LTCG) in accordance with current tax legislation. Another characteristic of ELSS funds is that you can invest in them by means of a systemic investment plan or SIP tax-saving. It is also important to note that ELSS investments made via the SIP route help you to minimize the risks associated with inflation – adjusted returns through compounding and rupee costs.

3. Save for Your Retirement:

It’s important that you save money for your retirement while you are still working. It is therefore recommended that you invest a portion of your income in a pension fund (also known as pension funds). You can thus not only plan a peaceful retirement life, but also benefit from tax benefits on the investment you make. Most pension funds from renowned insurers like Future Generali are hybrid in nature and you have the option of receiving a regular pension through the systematic redemption of the units. When we talk about the tax benefits provided by pension funds, the invested amount qualifies for a tax deduction up to Rs. 1.5 lakh according to section 80c.

4. Purchase a National Savings Certificate (NSC):

This scheme, introduced by the Indian Government as a low – risk investment scheme that could reach the majority of the population, is only available with the India Post. These certificates can therefore be obtained at the nearest post office, made on your behalf or in cooperation with another adult family member. You can also make the NSC in the name of a minor by a guardian only. The National Savings Certificate currently offers an annual compounded interest rate of 8 percent. That said, the interest rate is reset every three months, according to the G-Sec yields of the previous quarter. In addition, the interest earned each year is reinvested in the scheme until the date of early withdrawal or maturity. Investment in the NSC is eligible for deductions up to Rs in respect of tax savings. 1.5 lakh according to section 80c. Financial planning is essential in India if you want a high income now and maximize your wealth in the future. Not only must you create multiple sources of income early in your life, but you must also know how to save your income tax. Only then can you ensure that your investments maintain a healthy percentage of long – term returns, while you have the minimum possible tax liability.

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