MASTER UPDATE

Monthly Archives: May 2020

MASTER UPDATE

NEW UPDATES:*
_*✴️Income Tax:*_
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## *TDS Rates have been reduced* w.e.f. 14.05.2020 by *25% of the existing* rates. Here are *some clarifications in this regard*:
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*a. The reduction in rates* will not be applicable to *TDS on Non-Residents u/s 195*.
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*b. The reduction in rates* will not be applicable in *Non PAN cases (20% FLAT Rate) u/s 206AA.*
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*c. The reduction in TDS Rate* will be applicable on *invoices due or payments done on or after 14.05.2020* even if invoice date is before 14.05.2020. *What you have to see is

TDS & TCS Rate Chart applicable from 14th May 2020

TDS & TCS Rate Chart applicable from 14th May 2020

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In order to provide more funds at the disposal of the taxpayers for dealing with the economic situation arising out of COVID-19 pandemic, the rates of Tax Deduction at Source (TDS) for the following non-salaried specified payments made to residents has been reduced by 25% for the period from 14th May, 2020 to 31st March, 2021:-

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TDS Rate Chart applicable from 14th May 2020

S. No Section of the Income-tax Act Nature of Payment Existing Rate of TDS Reduced rate from 14/05/2020 to 31/03/2021
1 193 Interest on Securities 10% 7.50%
2 194 Dividend 10% 7.50%
3 194A Interest other than interest on securities 10% 7.50%
4 194C Payment of Contractors and sub-contractors 1% (individual/HUF) 0.75% (individual/HUF)

ITR & Tax Audit Due date for FY 2019-20 extended

ITR & Tax Audit Due date for FY 2019-20 extended

  • The due date of Income tax return (ITR) for FY 2019-20 has be extended from 31st July, 2020 and 31st October, 2020 to 30th November, 2020.
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  • Similarly Tax audit due dates have been extended from 30th September, 2020 to 31st October, 2020.

This was announced by the FM today.

 

 

MASTER UPDATES

➡️ Note:*_
*05.05.2020* is the due date to *file GSTR-3B* for taxpayers with *aggregate turnover* of more than *INR 5 crores* for the month of *March, 20.*
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  • *Note – Filing GSTR-3B* by the above date will *not give you extra cost burden* of Interest and Late Fees. *However, you can file above GSTR-3B till 24.06.2020* with *9% Interest and Zero Late Fees*.
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*A. MASTER UPDATES OF THE WEEK:*
  • 1⃣ Income Tax:*_
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## *CBDT has issued order* u/s 119 of the Income tax Act, 1961 to *provide that Form 3CD Clause 30C* (GAAR Provisions) and *Clause 44* (GST Expense Details) will *not be applicable in case* of Tax Audits *for F.Y. 2019-20.*
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  • _2⃣ Goods & Services Tax:_*
## *CBIC has notified FORM GST PMT-09* for transfer of *balances in Cash Ledger* from *one head (Tax/Interest/Fee,CGST/SGST/IGST) to another head* (Tax/Interest/Fee, CGST/SGST/IGST). The form *has been enabled on GST Portal* and can be filed if required.
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  • 3⃣ Corporate & Allied Laws:*_
## *MCA has extended* the due date for