Todays Tax Updates

Todays Tax Updates

1. CBDT grants further relaxation in electronic filing of Income Tax Forms 15CA/15CB

It has now been decided to extend the aforesaid date to 15th August 2021. In view thereof, taxpayers can now submit the said Forms in manual format to the authorised dealers till 15th August 2021. Authorised dealers are advised to accept such Forms till 15th August 2021 for the purpose of foreign remittances.

2. Gujrat High Court in the case of Nagri Eye Research Foundation VS UOI stated that Charitable Trust required to obtain GST Registration & Medicines provided by them, even at a lower rate, will get covered under “Supply”.

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3. . Interest-free loan cannot be treated as a financial debut without evidence that the loan was disbursed for the time value of money.
Case Name: Orator Marketing Pvt. Ltd. Vs Samtex Desinz Pvt. Ltd. (NCLTAT Delhi) Appeal Number: Company Appeal (AT) (Ins) No.1064 of 2020 Date of Judgement/Order: 08/03/2021

4. Income Tax Assessing Officer can make addition u/s 68/69C despite estimation of Income U/s 44AF of the Income Tax Act.
Case Name: Atul Dinesh Seth Vs ITO (ITAT Bangalore). Appeal Number: ITA Nos. 399 to 401/Bang/2020. Date of Judgement/Order: 08/03/2021

Govt’s net tax collection rises 86% to Rs 5.57 lakh crore in Quarter1 

5. UGC recognised CA qualification equivalent to PG degree. This will go in a long way to support Professional colleagues globally.

Govt’s net tax collection rises 86% to Rs 5.57 lakh crore in Quarter1

Govt’s net tax collection rises 86% to Rs 5.57 lakh crore in Quarter1

Parliament was informed on Monday that the government’s total tax collection increased by almost 86 percent in the April-June quarter to more than Rs 5.57 lakh crore. Net direct tax collection totaled Rs 2.46 lakh crore, while indirect tax collection totaled Rs 3.11 lakh crore.

Minister of State for Finance Pankaj Chaudhary said, “The net direct tax collection in the first quarter of FY 2021-2022 is Rs 2,46,519.82 crore as against Rs 1,17,783.87 crore during the same period of previous FY 2020-21, representing a growth of 109.3 percent.”

In the first quarter of FY 2021-2022, net indirect tax collection was Rs 3,11,398 crore, up from Rs 1,82,862 crore in the same time the previous year, a 70.3 percent increase.

In response to another query, Chaudhary stated that the Income Tax Department takes appropriate action against tax evaders in accordance with applicable legislation.

Searches, surveys, inquiries, income assessments, tax levy, interest, penalties, and the filing of prosecution cases in criminal courts, if applicable, are examples of actions taken under direct tax laws.

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Furthermore, under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act of 2015, more than 107 criminal complaints have been submitted.
Assessment orders under the Act had been issued in 166 cases as of May 31, 2021, with a total demand of Rs 8,216 crore.

In the HSBC cases, concealed income of around Rs 8,465 crore was brought to tax, and a penalty of Rs 1,294 crore was imposed. In ICIJ (International Consortium of Investigative Journalists) cases, the undisclosed income of almost Rs 11,010 crore has been discovered.

Representation on 10 issues relating to GST

Undisclosed credits totaling Rs 20,078 crore and Rs 246 crore have been discovered in the Panama Papers and Paradise Papers disclosures, respectively.

 

ET Financial Inclusion Summit: For a digital India, rules should aim at desired outcomes

ET Financial Inclusion Summit: For a digital India, rules should aim at desired outcomes

Due to the Covid-19 pandemic and periods of forced self-isolation, digital payments have become the default option for a significant portion of the population.

According to Nikhil Sahni, Mastercard’s division president for South Asia,

The number and value of paper-based instruments such as checks have decreased in the last financial year, while retail digital payments lead by UPI-based transactions have improved.

“In terms of digital payments, internet access, smartphone ownership, and provision for Jan Dhan accounts, which the prime minister himself envisioned, have all been milestones in the right direction.

Paper instruments such as checks saw a 35 percent drop in volume and a 28 percent drop in value in the previous fiscal year. At the same time, retail digital payments increased by 16 percent, with UPI-based payments doubling.

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“Spending on digital infrastructure by the government at a time when private consumption is fundamentally declining would promote economic development and have a multiplier effect, making economic activity considerably more efficient and environmentally sustainable.

To make payments across devices without fear of fraud.

The government must establish a regulatory framework that allows for platform interoperability, allowing people and businesses to make payments across devices without fear of fraud.

Regulations should aim for desirable outcomes regardless of who delivers them, and establish circumstances for competition and collaboration where necessary. We need data protection regulations that encourage ethical behavior while not penalizing individuals or gamers to the detriment of the entire community,” he stated.

GST’s Applicability to the Reverse Charge Mechanism for Service Imports

After offering digital payments to 1 billion people between 2014 and 2020, Mastercard wants to convert 1 billion people and businesses around the world in the next four years.

“Our commitment to financial inclusion is part of a larger social commitment…

Mastercard is excited to work with the government and other stakeholders to make India truly digital,” says the company.