Companies Act (Relaxations)-CRUX

1. No Additional Fees for late filing (April 1, 2020 – Sep 30, 2020)

2. Holding Board Meeting – Relaxation by 60 days till next 2 quarters

3. CARO 2020 – Applicable from FY 2020-21 not from 2019-2020 (as earlier decided)

4. ID Meeting not held in 2019-20 – No non-compliance

5. Newly Incorporated Companies – For filing commencement of business – extended by 6 months

6. If any director does not satisfy the minimum residency requirement – No violation now

7. Deposit Redemption Reserve – Extended till June 30, 2020

8. Debentures Redemption Reserve – Extended till June 30, 2020 (Investment of 15% Amount).

9. Suspension of section 7/9/10 of IBC may be considered if the current situation continues till 30th April so that co may be stopped from being forced into insolvency proceedings.

10. IBC: Threshold for default raised from 1 Lac to 1 crore.

Latest Updates

  • Tips for Smooth and Hassle-Free Income Tax Return Filing
    Tips for Smooth and Hassle-Free Income Tax Return Filing Filing your income tax return is a vital part of managing your finances and requires careful attention. Follow these structured steps and guidelines to ensure a seamless and accurate process. Gather All Income and Investment Documents Collect all relevant information on your […]
  • Understanding Tax Deduction at Source (TDS)
    Understanding Tax Deduction at Source (TDS) Tax Deduction at Source (TDS) is a mechanism where income tax is automatically deducted from payments made to a person during specified transactions. This process ensures timely tax collection by the government by collecting the tax upfront. TDS is typically deducted on incomes such as […]
  • Filing your income tax return early this year? Understanding these 5 essential points is crucial.
    Filing your income tax return early this year? Understanding these 5 essential points is crucial. It is precisely 45 days since the end of the 2023–24 fiscal year, and there are 75 days remaining before the July 31 deadline for filing income tax returns (ITRs). This is a great moment for an individual […]
  • CBDT Introduces Enhanced Feature in Income Tax AIS: Track Your Correction Request Status Now
    CBDT Introduces Enhanced Feature in Income Tax AIS: Track Your Correction Request Status Now Many taxpayers who identified inaccuracies in their Annual Information Statement (AIS) had provided feedback but were unsure if the reporting entities, like banks, addressed their concerns. However, the Central Board of Direct Taxes (CBDT) has updated the […]
  • Understanding the Consequences of Incorrect HRA Declarations
    Understanding the Consequences of Incorrect HRA Declarations The income-tax department has discovered between 8,000 and 10,000 high-value cases, each containing false House Rent Allowance (HRA) claims totaling more over Rs 10 lakh. Rather than the original property owners, taxpayers are claimed to have given PANs of acquaintances, lower-class relatives, and themselves […]

Section 80GG: Deduction For Rent

House rents can turn into a genuine weight for the most part in the metropolitan urban communities where getting a house on lease is troublesome. Since the interest for the leased house is so high, the lease additionally getting soar as time passes. Be that as it may, in the event that you are a salaried worker and gets HRA or you have your own home in the town, you may require not to stress. Be that as it may, for the individuals who need to lease a house however don’t get HRA (House Rent Allowance), it might hurt their month to month pay. In any case, there is an arrangement in the Income Tax Act, which can be a deliverer for you. Pay Tax Act segment 80GG enables you to guarantee a conclusion on the measure of lease you pay each year.

What is Income Tax Act Section 80GG?

80GG is a segment in the Income Tax Act of India, under which an individual, either individual or HUF can guarantee a derivation on the lease that is paid towards an outfitted or empty house. The house must be being used for their private settlement.

By derivations, here we mean the sum you can deduct from your gross salary of the year to infer at the net assessable pay on which the pay expense would be charged.

How to claim deduction under Section 80GG?

There are sure conditions which you have to meet to be qualified for the reasonings under Section 80GG. Here are those criteria –

  • One can guarantee reasoning under this area in the event that the person is independently employed or salaried.
  • Organizations can’t guarantee conclusion under this area for their rental costs.
  • You being an individual or a Hindu Undivided Family (HUF) must be qualified for get this conclusion.
  • In the event that you are salaried, you should not accepting any HRA advantages and you are not by any means qualified for get thus, to profit the advantage of segment 80GG.
  • In the event that the measure of lease surpasses Rs. 1 lakh, at that point you have to indicate PAN subtleties of the Landlord (proprietor) of the house to demonstrate that you are living there as an occupant on lease.
  • To demonstrate that you are not guaranteeing the finding on a house or a private property that is involved by you in the area or some other area of your work.
  • You can guarantee finding under this segment on any sort of private property which is empty, outfitted or even semi outfitted where you remain as an inhabitant.
  • On the off chance that the citizen gets any sort of comparative derivation in that appraisal year, at that point the individual in question or the HUF can’t get conclusion under this 80GG segment.

What will be the quantum of deduction under section 80GG?

The measure of conclusion can be the least of any of the accompanying three –

  • Rs. 5000 every month or yearly Rs. 60000
  • 25% of the yearly pay of the individual or the HUF
  • Sum inferred in the wake of deducting 10% of the complete pay from the measure of all out lease paid in the money related year.

Examples

For understanding the measure of conclusion that you can be qualified for betterly, here is a precedent.

Assume, your companion Samiksha is procuring Rs. 5 lakh p.a. She lives in Mumbai in a leased loft and pays a lease of Rs.15000 every month. In this way, her all out lease every year is Rs. 180000. Presently, according to the previously mentioned criteria, the three potential outcomes can be –

  • Rs. 60000 every year
  • 25% of 5 lakhs = 1.25 lakhs
  • 180000-(10% of 500000) = Rs.130000

In this way, the least of this three sum is Rs. 60000. So your companion can guarantee and get a finding of Rs. 60000 every year on the all out pay for the lease she pays.

Who can claim Deductions under this act?

An individual who lives in a leased private house and she or he should be an individual or HUF not accepting any HRA from their boss can get the reasoning.

Exemptions

There are sure situations where you can’t guarantee the finding regardless of whether you meet the previously mentioned criteria –

  • You are the proprietor of a house in the city or the town where you are utilized or doing your business (independent work).
  • For them who are remaining with their folks in the parental house, can’t get derivation under this area.

The Trick

Along these lines, you are living with your folks or some other relative where you don’t pay any lease yet need to benefit the finding under 80GG. All things considered, you have to pay the lease to your folks or relative at any rate on paper that is you need the receipts of lease installment of in any event Rs. 60000 to profit the base conclusion. In any case, the contort is your folks need to demonstrate the lease as their salary from lease in their government form.

What is the data required for claiming deduction under segment 80GG?

To guarantee the finding under segment 8oGG, you have to record the essential subtleties.

  • Your name
  • The location of the private reason where you have been living on lease. You need to give the full location the postal code too
  • Your PAN subtleties
  • The residency for which you are living in the leased property
  • Measure of lease and mode (through money, bank store and so on.) of installment
  • The location and name of the proprietor of the house. (for example landowner).
  • As referenced above also, if the lease you pay surpasses Rs. 1 lakh in a year, alongside your PAN subtleties you need to give the PAN subtleties of your proprietor.
  • An affirmation that you don’t possess any private property on your name or your companion name and even on the name of your minor kid or as an individual from HUF.

Synopsis

Under Section 80GG of the Indian Income Tax Act 1961, any individual or HUF (no Companies) can guarantee a reasoning on the measure of lease they pay for their settlement. To guarantee the reasoning the individual or the HUF must act naturally utilized or salaried. Also, in the salaried activity, individual or the HUF must not be qualified for get any HRA (for that appraisal year). The least of Rs. 60000 every year or 25% of the absolute pay in a year or the sum determined by deducting 10% of the all out salary from the complete lease paid in a year can be asserted as the conclusion. The assessee must not claim any private property on his or her name and not even on relatives like a life partner or minor kid’s name, else, they can’t be qualified for get any derivation under this segment.

New GST Returns applicable from 1st April (Notified by Govt)

The Central Government has advised the new GST returns material from first April 2019 under which the organizations can report solicitations on a persistent premise.

The GST Council prior said that the new reconsidered GST profits would be actualized for a pilot premise from April 1, 2019, and would be commanded the nation over from July.

The new and updated return organization would block the need to outfit returns under the group of GSTR-1, GSTR-2 and GSTR-3, however the yearly return GSTR-9 may proceed, specialists said.

Prior, the GSTR-2 and GSTR-3, i.e., buy and information yield returns had been suspended by the GST Council because of its unpredictable structure.

Then again, GSTR-1, a deal return, and GSTR-3B, rundown input-yield return, remain. The new structures are transferred following an activity to disentangle the profits under GST.

The new return positions — named “ordinary”, “sahaj” and “sugam” — would make the consistence procedure easier for the littlest of organizations wherein citizens up to a turnover of Rs 5 crore would have a choice to record any of the three structures.

The new updated GST returns would assist the division with curbing GST avoidance since it empowers to coordinate the solicitations of the dealer and the buyer. And yet, it is probably going to increment administrative and regulatory work for organizations.

The HSN-wise subtleties should be given at the receipt level instead of the rundown level. Also, while subtleties at 4-digit HSN codes are required in the present configuration, the new arrangement would require those subtleties at the 6-digit HSN level.