Prabhat & Co - Prabhat Computax

-23 year

*Budget updates*

- Provision for filing ‘Updated Income Tax returns’ within 2 years from end of relevant AY
- Reduced AMT rates for Co-operatives from 18.5% to 15%
- Reduced surcharge for Co-operatives with total income of 1cr to 10Cr
- Tax relief for persons with disability: Allow annuity payment to differently abled dependents when parents attaining age of 60 years
- Deduction for National Pension Scheme for State Government employees u.s 80CCC made at par with Central Govt.
- Start-ups established before 31.03.2023 (earlier – 31.03.2022; now extended by 1 year) will be provided tax breaks
- Last date for commencement of manufacturing for claiming lower tax regime under Section 115BAB to be 31.03.2024 (earlier 31.03.2023; now extended by 1 year)
- Virtual digital assets (Cryptocurrency):
Income from transfer of virtual digital assets to be taxed at 30%; No deduction for expenses other than cost of acquisition; No set off of losses
TDS @ 1% on consideration above specific threshold
Gift to be taxed u.s 56(2)(x)
- No repetitive appeals for common question of laws
- Off-shore banking units/ IFSC income to be provided exemptions
- Surcharge of certain AOPs to be capped at 15%
- Surcharge on Long Term Capital Gains on any assets to be capped at 15%
- Health and education cess not allowable as business expenditure u/s 37
- No set off of losses against undisclosed income detected during search

2020-21

*Relief Measures announced in GST Compliances In view of recent surge in coronavirus cases:*
1. *Reduction in Interest Rate* for delayed GST payment for Regular Taxpayer for the month of March & April 2021
a. Regular taxpayer- Turnover more than 5 Cr- Interest rate reduced to 9% for first 15 days
b. Regular taxpayer- Turnover upto 5 Cr- Interest rate reduced to NIL for First 15 days and 9% for next 15 days

2. *Reduction in Interest Rate* for delayed GST payment for Composition taxpayer for the March’21 quarter- Interest rate reduced to NIL for First 15 days and 9% for next 15 days

3. *Waiver of late fees* for delayed filing of GSTR-3B for the month of March & April 2021
a. Regular taxpayer- Turnover more than 5 Cr- Late fees waived for 15 days
b. Regular taxpayer- Late fees waived for 30 days

4. *Extension in due date for filing GSTR-4* for composition taxpayers for FY 2020-21- The due date extended to 31st May 2021 from current 30th April 2021.

5. *Extension in due date for furnishing the declaration in ITC-04* in respect of goods dispatched to a job worker or received from a job worker for Jan-Mar’21 quarter- The due date extended to 31st May 2021.

6. *Extension in due date for filing GSTR-1* for the month of April 2021- The due date extended to 26th May 2021.

7. *Extension in due date for filing IFF* for the month of April 2021- The due date extended to 28th May 2021.

8. *Relaxation in restriction of Input Tax Credit under rule 36(4)-* , the said restriction of 5% shall apply cumulatively for the period April to May, 2021.

9. *Time limit for completion or compliance of any action, by any authority or by any person, which falls during the period from the 15th April, 2021 to 30th May, 2021 is extended up to 31st May, 2021*
a. The said extension will also apply for completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by whatever name called by any authority, commission or tribunal.
b. The said extension will also apply for filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record, by whatever name called
However exception is given for few compliances, for which the time-limit is not extended.

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LAST DATE FOR FILING TAX AUDIT REPORT AND RETURN FILING IS 30TH SEPTEMBER 2019.

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