Realtime Certicom updates

Certicom Latest Updates

1. Income Tax Attachment of Bank accounts are not permitted after expiry of statutory time limit Case Name : Gobindo Das Appeal Number : Ors. Vs Union of India & Date of Judgement/Order : Ors. (Calcutta High Cou

2. SBI has launched an offer under which taxpayers can file ITR for free of cost, the public sector lender has stated. To file the ITR, taxpayers would require a few documents. These are PAN card, Aadhaar card, Form-16, Tax deduction details, interest income certificates, and investment proofs for tax saving.

3. GST Tax reforms are best implemented when revenue buoyancy is increasing. Considering this, the setting up of a seven-member Ministerial Panel for rationalising the GST rate structure chaired by the CM of Karnataka does not come a day sooner.

The economy has been registering a steady recovery, and with the settled technology platform tax compliance in GST has been showing improvements (revenue collection from GST reached Rs 1.17 trillion in September, the highest in the last five months).

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4. GST: Supply of services even by unincorporated association to its members for consideration is supplied under GST. Case Name: In re Gujarat Hira Bourse (GST AAR Gujarat) Appeal Number: Advance Ruling No. GUJ/GAAR/R/52/2021 Date of Judgement/Order: 15/09/2021

5. RBI suspended its version of quantitative easing, signalling the start of tapering pandemic-era stimulus measures as an economic recovery takes hold. There is no need for further bond-buying, RBI Governor Shaktikanta Das while stressing the step is not a reversal of its accommodative policy stance.

6. OECD: Multinational corporations will be subject to a minimum tax of 15% from 2023, in a major reform of the international tax system finalized by the OECD on Friday. The framework, backed by 136 countries, including India, seeks to ensure a fair share of taxes for countries where multinationals and global digital companies such as Netflix, Google earn revenues from.

Extended due dates of Income Tax Return and Tax Audit

7. CBDT have no power to Enlarge the scope of MCI regulation. Case Name: Evolutis India Private Limited Vs ACIT (ITAT Mumbai) Appeal Number: ITA No. 4923/MUM/2018 Date of Judgement/Order: 23/09/2021

8. RBI increases IMPS Limit per transaction from Rs 2 lacs to Rs 5 lacs. Individual banks may take some time to update their systems wef 8.10.2021.

9. RBI bi-monthly meet it was decided that Repo rate to remain unchanged at 4%. Reverse Repo rate to remain unchanged at 3.35%. The MPC voted 5:1 to maintain an accommodative stance.

10. RBI: Reserve Bank has today (October 08, 2021) filed applications for initiation of corporate insolvency resolution process against Srei Infrastructure Finance Limited and Srei Equipment Finance Limited under Section 227 read with clause (zk) of sub-section (2) of Section 239 of the Insolvency and Bankruptcy Code (IBC).

Extended due dates of Income Tax Return and Tax Audit

Extended due dates of Income Tax Return and Tax Audit

The Indian government has extended the deadline for filing the Annual Income Tax Return (ITR) for Fiscal Year 2020-21 from September 30, 2021 to December 31, 2021 for Indian citizens.

Those whose accounts do not require an audit and who typically file a tax return are eligible for the extension. Forms ITR-1 and ITR-4 are used to report income.

The Finance Ministry stated in a statement that the decision was based on taxpayers’ and other stakeholders’ allegations of difficulties in completing income tax returns and different audit findings for the 2021-22 assessment year under the Income Tax Act of 1961.

Individuals’ deadline to file their Annual Income Tax Return (ITR) for fiscal year 2020-21 has been extended from July 31, 2021 to July 31, 2022. From the beginning, various challenges and problems have eclipsed the new gateway for e-filing income tax returns. Finance Minister Nirmala Sitharaman has given Infosys, the corporation responsible for the new income tax site, until September 15, 2021 to remedy any difficulties.

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Individuals’ ITR application deadlines were extended four times last year, initially from 31 July to 30 November 2020, then till 31 December 2020, and finally until 10 January 2021.

Due to difficulties experienced by taxpayers in completing income tax returns (ITR) and audit reports for the fiscal years 2021-22 under the Income Tax Act of 1961, the CBDT has extended the deadline for filing ITR and audit reports for the fiscal years 21-22. The IT department tweeted, “Circular 17/2021, dated 09.09.2021, has been issued.”

The deadline for filing audit reports for the preceding fiscal year 2020-21 in conformity with all statutory provisions has been extended to January 15, 2022.

The deadline for filing an accountant’s report under Article 92F of the Act by anyone who made certain international or domestic transactions in the preceding year 2020-21 is now 31 January 2022.

IT has agreed to extend the deadline for filing SPT PPh AY 2021-22, as well as various other deadlines, to February 15, 2022.

The deadline for submitting returns for the 2021-22 appraisal year, which was previously set for December 31, 2021, has been pushed back to February 28, 2022.

For the 2021-22 AY, the deadline for awarding pending or revised income refunds has been extended to March 31, 2022.2022.

7 steps to a simple income tax return filing

7 steps to filing your income-tax returns smoothly

For individual taxpayers and assessees other than those whose accounts are due for audit, the CBDT has extended the deadline to file FY 2020-21 income tax returns (ITRs) to December 31, 2021, from the previously extended deadline of September 30, 2021.

Returns must be filed meticulously to ensure accuracy and completeness. Any inconsistencies or holes in reporting can result in questions or tax notices from the IRS.

The entire procedure of filing returns takes place online. Furthermore, due to the demand of additional information as well as the changes in processes in the new income-tax portal, an individual may make mistakes. It’s also possible that the process will take longer than usual.

In light of the foregoing, the following are some typical errors that people should avoid while filing their ITR.

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Using correct ITR Form

The taxpayer must utilise the correct ITR form when filing the ITR. If a taxpayer files an ITR on the incorrect form, the tax department may issue a notice of defective return to the taxpayer under section 139(9) of the Act. In this case, the instructions on the form given by the tax department should be consulted in order to decide the relevant form to use depending on residency, kind of income, number of housing properties, and other factors.

For example, anyone with taxable income of less than Rs 50,00,000 (Rupees fifty lakhs) can use Form ITR-1 as long as he does not have any income from “Capital gains” or “Profits and gains of business or profession.” If you are a director of a firm or own unlisted stock, or if you own more than one residence or have agricultural income over Rs 5,000, you cannot utilise Form ITR 1.

Mentioning correct basic details

Individuals should make certain that they have the correct PAN, Aadhaar, and TAN numbers, as well as that their residential status is accurately established and stated. They should also double-check all of the information on the ITR Form before submitting the tax return.

Mention correct communication details

An individual must include accurate and up-to-date contact information, such as an email address, address, and phone number. Because the IRS has shifted to faceless assessments, all correspondence will be sent to the email address listed on the tax return.

Report all sources of income

Based on his residency status, a taxpayer must record all sources of income, including interest on fixed deposits (FDs), capital gains from the sale of mutual funds, including equity shares, and any other asset. Dividend income becomes taxable in FY 2020-21, and taxes must be paid accordingly.

All international assets and income, including overseas pensions, ESOPs, foreign bank accounts, and any benefits claimed under the Double Taxation Avoidance Agreements, should be reported by residents and ordinarily resident individuals.

Save your Taxes via Hindu Undivided Family (HUF)

Reconciliation of income in Form 26AS

Individuals should double-check that the income recorded on Form 26AS matches the income reported on their ITR. Any discrepancy will result in the department issuing a tax enquiry. For proper return processing, the taxpayer should ensure that the tax paid facts contained in Form 26AS are appropriately mentioned in Form ITR.

Reporting income from the previous employer

If you changed employment during FY 2020-21, you must declare income from your old employer as well as income from your present employer. Additionally, the standard deduction should be limited to a maximum of Rs 50,000.

Taxpayer should ensure that active and precise bank account details (i.e. account number, IFSC code, name of the bank, etc.) are stated in case of a tax refund arising from an ITR to enable faster arrival of the refund to the taxpayer’s bank account.

E-verify ITR

Only the e-verification of the ITR filed completes the ITR filing process. To e-verify a tax return, you can use Aadhaar OTP, Net banking, Demat account, bank ATM, or just email the signed physical copy of Form ITR-V to CPC Bangalore.

To facilitate smooth e-verification of returns filed, the taxpayer must ensure that PAN and Aadhaar are linked (the deadline for connection has been extended to March 31, 2022). The Indian mobile number must also be active. Tax authorities consider the return to have been filed once the e-verification is completed.