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.

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.

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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.

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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Due Date For Filing Income Tax Return, Audit Report??

Due Date For Filing Income Tax Return, Audit Reports Extended By 15 Days

The taxman last month announced the extension of the maturity date of September 30 by a similar 15 days.

For the same assessment year, the deadline for submitting an audit report has been pushed back to October 31 from September 30. The due date for filing returns for AY 2021-22 for corporate taxpayers and individual taxpayers subject to tax audit has been extended from October 31 to November 30.

 The Government on Monday extended the due date for submission of income tax returns (ITR) and audit reports. The Direct Tax Center Board, the top policy-making body of the Income Tax Department, said the due date for filing income tax returns and the audit report for Assessments 2018-19 (2017-18 financial year) is October 31, 2018 for certain. taxpayer category. Monday’s step marks the second extension given by the Direct Tax Center Council to assessors whose bookkeeping must be audited. The move comes after the tax officer considers representation from stakeholders, he said in a statement.

The taxman last month announced the extension of the maturity date on September 30 by the same 15 days, until October 15, 2018.

Submission of income tax returns by paid taxpayers and those choosing the Estimated Income Scheme jumped 71 percent to 5.42 crore until August 31, according to data released by the Income Tax Department. This taxpayer category must provide their ITR for the 2017-18 financial year in August.

A taxpayer must mandatorily undergo a tax audit of his/ her books of accounts if the sales, turnover, or gross receipts exceeds Rs 1 crore in a financial year. The threshold limit of Rs 1 crore is proposed to be increased to Rs 5 crore with effect from AY 2020-21 (FY 2019-20.

The taxman announced a new due date of October 31 filing of ITR and audit reports

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