Budget 2024 — Union Budget to continue towards a Great India, without any more taxes

Interim Budget 2024:

FM proposes Corpus of One Lakh Crore for R&D Investments with Fifty Year Interest Free Loan

Tripling of Direct Tax Collections:

Over the last 10 years, direct tax collections have witnessed an impressive surge, more than tripling in magnitude.

No New Taxes &

No increase in taxes

 

Top 75 Highlights of Budget FY 2024-25 by Finance Minister Nirmala Sitharaman

1. No Changes in Income Tax Slabs

2. No Change in Tax rates for Company, LLP or any other person

3. Some Exemption to Srartups and Extend some concession – extension of tax sops for soverign wealth funds and startups to March 2025
4. Tax payers service – Withdrawal of direct tax demands of period upto ₹25000 for period upto 2009-10 and ₹10000 for period upto 2014-15, 1 Crore people will benefit
5. 40,000 normal railway bogies will be converted to vande Bharat standards

6. 1-lakh crore corpus will be made available with 50 year interest free (long-term financing or refinancing) to encourage the private sector to scale up R&D. Corpus of 1 Lakh Crore for Reduced Rate Loans to Private Sector for Research in Sunrise Domains
7. Rooftop solarisation and free electricity Through rooftop solarisation, 1 crore households will be enabled to obtain up to 300 units of free electricity every month
8. This scheme follows resolve of Prime Minister, on the historic day of consecration of Ram Mandir in Ayodhya
9. Garib, Mahila, Annadata and Yuva will be focus groups
10. SithramanWorking to make India a Vikasit Bharat by 2047
11. Worries about food have been eliminated with free rations for 80 crore people
12. 25 crores Indians were pulled out of multi dimensional poverty by the govt over past 10 yrs

13. Govt could save 2.7-lakh crore through avoidance of leakages
14. Electronic agri Mandi has connected 1051 mandis, transacting ₹2-lakh crore
15. Minimum support prices for ‘Annadata’ (farmers) increased periodically
16. Direct financial assistance was extended to 11.8 crore farmers
17. For our government, social justice is an effective and necessary model
18. Female enrolment in higher education has gone up by 28 per cent in 10 year
19. Avg real income has increased by 50 per cent
20. Every year under PM Kisan Samman Yojana, Direct financial assistance is provided to 11.8 crore farmers, including marginal and small farmers
21. PM SVANIDHI has provided credit assistance to 78 lakh street vendors, from that total, 2.3 lakh have received credit for the third time

22. PM JANMAN Yojana reaches out Particularly Vulnerable Tribal Groups
23. PM Vishakarma Yojana provides end to end support to artisans and craftspeople
24. Scheme for empowerment of Divyang and transgender people reflects our resolve to leave no one behind
25. PM Mudra Yojana has sanctioned 43 crore loans amounting to Rs. 22.5 lakh crore for entrepreneurial aspirations of your youth
26. Fund of Funds, Startup India and Startup Credit Guarantee Schemes are assisting our youth
27. The National Education Policy 2020 is ushering transformational reforms

28. PM Shri is delivering quality teaching
29. Skill India Mission has trained 1.4 crore youth, upskilled and reskillled 54 lakh youth and established 3,000 new ITIs
30. Large no. of institutions of higher learning namely 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMSs and 390 universities have been set up
31. The country received its highest ever medal tally in Asian Games and Asian Para Games in 2023
32. Chess prodigy and our No. 1 ranked player Praggnanandhaa put up a stiff fight against world champion Magnus Carlsen in 2023, today, India has over 80 chess grandmasters compared to little over 20 in 2010

33. The earlier approach of tackling poverty resulted in very modest outcomes When the poor became empowered partners in development process, government’s power to assist them increases manifold. In the last 10 years, the government has assisted 25 crore people to get freedom from multidimensional poverty
34. 2cr more houses will be built under PM Awas Yojana Gramin 1cr houses will be taken to rooftop solar units to generate free electricity

35. Housing for Middle Class, Govt will launch a new scheme to buy and build their own houses
36. Making Triple Talaq illegal, one third women’s reservation in Lok Sabha and state assemblies, giving over 70% houses under PM Awas Yojana in rural areas to women as sole or joint owners have enhanced their dignity
37. Empowerment of Women through entrepreneurship, ease of living and dignity has gained momentum in last 10 years
38. 30 crore MUDRA Yojana loans have been given to woman entrepreneurs
39. Female enrollment in higher education has gone up by 28% in 10 years

40. In STEM courses, girls and women constitute 43% of enrollment, one of the highest in the world
41. All these are getting reflected in increasing participation of women in workforce
42. Making Triple Talaq illegal, one third women’s reservation in Lok Sabha and state assemblies, giving over 70% houses under PM Awas Yojana in rural areas to women as sole or joint owners have enhanced their dignity
43. Besides delivering on high growth, the government is equally focussed on a more comprehensive GDP – I.e., Governance, Development and Performance

44. Ayushman Bharat scheme cover will be extended to all Asha, Anganwari worker and helpers
45. To ensure housing for middle class, the government will launch a scheme for middle classThis is to help them to buy or build their own houses for those living in slums, chawls or rented houses, she added.
46. A committee to set up more medical colleges, free cervical Cancer vaccines for girls from 9-14 years
47. Nano DAP on various crops will be expanded in all agro-climatic zones

48. GST has enabled One Nation One Market One Tax
49. GIFT IFSC and Unified Regulatory Authority IFSCA are creatin a robust gateway for global capital and financial resources
50. Proactive inflation management has helped keep inflation within the policy band
51. Matsya Sampada Yojana to be expanded to generate more employment, increase earnings
52. Despite the challenges due to COVID, implementation of PM Awas Yojana Rural continued and we are close to achieving the target of 3 crore houses. 2 crore more houses will be taken up in the next 5 years

53. India U.S. Europe sponsored Middle East- europe corridor: potential gateway for world trade for 100s of years.

54. India assumed G20 Presidency during very difficult times, global economy was going through high inflation, low growth, high interest rates, very high public debt, low trade growth and climate changes
55. Pandemic has led to a crisis of food, fertilizer, fuel and finances while India successfully navigated its way and showed the world the way forward

56. India built consensus on global problems, the recently announced India Middle East Europe Economic Corridor is a strategic and economic game changer for India and others
57. Our government is ready to assist states in faster development of aspirational districts and blocks Government will pay utmost attention to make eastern region and its people a powerful driver of India’s growth

58. Social Justice was largely a political slogan. For our government, social justice is an effective and necessary governance model !! The saturation approach of covering all eligible people is the true and comprehensive achievement of social justice, this is secularism in action, reduces corruption, prevents nepotism There is transparency and assurance that benefits are received to all eligible people, all regardless of their social standing get access to opportunities We are addressing systemic inequalities which have plagued our society, our focus is on outcomes and not on outlays so that socioeconomic transformation is achieved
59. Charging of electric vehicles Entrepreneurship opportunities to a large number of vendors for supply and installation, employment opportunities for youth with technical skills in manufacturing, installation and maintenance
60. Rooftop solarisation and free electricity

61. Through rooftop solarisation, 1 crore households will be enabled to obtain up to 300 units of free electricity every month
62. FDI inflows stand at $596 billion, twice more than 2014-15

 

63. The govt will form a high powered committee to address the concerns of fast population growth and demographic change

64. Fisheries scheme to help reach the target of INR 1 lakh crore exports
65. 2 Crore More Houses To Be Built Under PMAY-Gramin

66. Fiscal deficit for FY 24 revised at 5.8%. lower than earlier estimate of 5.9% in BE

67. FDI is ‘First Develop India. FDI inflow during 2014 to 2023 was Rs 596 billion US dollars, marking a golden era. This was twice the FDI inflow between 2005 to 2014. For sustained FDI, we are negotiating bilateral investment treaties with foreign partners.

68. PM Mudra Yojana has sanctioned 43 crore loans amounting to Rs. 22.5 lakh crore for entrepreneurial aspirations of our youth
69. Revised fiscal deficit estimated for FY24 has been pegged at 5.8% of GDP and the deficit for FY25 is pegged at 5.1%
70. To address fervour for domestic tourism, projects for port connectivity, tourism infra & amenities will be taken on our islands including Lakshadweep
71. Government will further promote private and public investment in post harvest activities including aggregation, modern storage, supply chains, primary and secondary processing, marketing and branding
72. After successful adoption of nano urea, Nano DAP application on various crops will be expanded in all agroclimatic zones
73. Electronic National Agricultural Market has integrated 1,361 mandis and is providing services to 1.8 crore farmers with trading volume of 3 lakh crores of rupees. The sector is poised for inclusive, balanced and higher growth and productivity.
74. I propose to retain the same tax rates for direct and indirect taxes including import duties
75. Govt will lay a white paper in house on mismanagement of the economy before 2014
Regards

Taxes no change. Old problems written off… upto Rs 25000 for around 1 crore people. Budget 2024 — Union Budget Lovely Brand India

Link to Govt site : https://www.indiabudget.gov.in/

and contact us on link

Taxation and Interim Budget 2024: Achievements and Proposals [Read Finance Bill]

 

PAYTM was a Success story

But now in a Problem .  PAY-TM …. a Pioneer but now a Chinese JV Bank in India

No New Deposits or Credit Transactions Allowed after Feb 29, 2024

MAIN NEWS  –

• RBI Imposes Restrictions on Paytm By Navasree A.M – On January 31, 2024 6:31 pm .

 

• The Reserve Bank of India ( RBI ) has imposed huge restrictions on the Paytm Payment Bank Ltd.

• According to the press release issued by the apex bank, it stated that the paytm shall not accept any new deposits or credit transactions or top ups to the customer accounts, wallets, FASTags, NCMC cards, etc after February 29, 2024.
• However, the interest, cashback or refunds which may be credited anytime.

CONTEXT  –  

• In 2022, the apex bank instructed Paytm to stop onboarding new customers.

• It also directed it to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system.

• Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing reports of the IT auditors, stated the press release issued in 2022.

• The Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action.

• Accordingly, in exercise of its powers under section 35A of Banking Regulation Act, 1949 and all other powers enabling it on that behalf, the Reserve Bank of India, on 31st January 2024 has issued few directions to Paytm.

• The paytm bank was DIRECTED NOT TO TAKE any further deposits or credit    transactions or   top up in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime.

 

• The customer is ALLOWED to withdraw or utilize balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags.

SIGN OF RELIEF –

• National Common Mobility Cards, etc. are to be permitted without any restrictions, up to their available balance.

• The RBI’s decision did not affect the customers because the directions clearly clarified that the customers’ interest, refund or cashbacks can be credited to their account.

• Also, the customers can withdraw or utilize their balances up to their available balance.

• It is also clarified that the fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI facility will be provided by the paytm bank even after February 29, 2024.

RESTRICTIONS –

• No other banking services, other than those referred above, like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI facility should be provided by the bank after February 29, 2024.

• The Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd. are to be terminated at the earliest, in any case not later than February 29, 2024. Fifthly, the settlement of all pipeline transactions and nodal accounts (in respect of all transactions initiated on or before February 29, 2024) shall be completed by March 15, 2024 and no further transactions shall be permitted thereafter.

PAYTM Chinese JV Bank… now in problem RBI New Rules for PAYTM. PAYTM is in big problem. Hope things sort out soon. the people are getting their funds out… and things are in a mess.

Authored by Ms Sreoshee,  Proud MLG Team member,

Tax ALERT

 

This is normal yearly Quarterly SOP. Nothing new. But sending this reminder only for ready reference.

We all know that we must pay advance tax before the financial year ends in 4 instalments: 15th June, 15th September, 15th December and 15th March.

This is not applicable if your Tax due is nil, of Tax due is less than the TDS already deducted by your customers etc.

Points to remember

1. Is this on estimate basis ? Yes, make your best estimate .
2. For December month, the amount is calculated as follows: (a) Calculate 45% of the Annual Tax payable . And reduce the Advance tax, you have already paid in the instalment of 15th June and 15th September.
3. This is not applicable if your Tax due is nil, of Tax due is less than the TDS already deducted by your customers etc.
4. What will happen if you don’t pay in time ? Government will charge a bit of interest… this is approx 1% p.a. ( for a block of 3 months, in 1 go ). And Note, that interest is “disallowed”. Hence effective interest comes to 15% p.a. And comes to 3 months at a go. So, miss the date by just 2-3 days and pay interest for full next 3 months.
5. How to pay  ? Online only.
6. Site name = either your Bank account will have a link, or
7. Official sites are : https://incometaxindia.gov.in/ and https://incometaxindia.gov.in/Pages/tax-services/pay-tax-online.aspx

Benefits of Paying Advance Tax
1. Avoidance of interest cost
2. Better cash flow management
3. Avoidance of last-minute stress in March ( end of the year )
4. Avoidance of default notice by the tax department

SO
PLS AVOID LAST DATE. and pay in time, as per normal annual SOP.

 

Monthly EMI scheme ( self made )

Have you paid your Advance tax for FY 23-24 ( AY 24-25 ). Do you know you can pay monthly also. Yes, try it.

 

So, again, Make your company more “marketable” in Banking Industry.

A Tax paying company is of course better “loan-worthy” .  and if you pay advance taxes in time.,,. you actually end up paying lower taxes… since you save the interest costs

Start go Ahead. And Enjoy the new way of doing business.

Contact us page click here

www.mlgassociates.org and www.mlgassociates.in

 

Do you know that you can make a Single Challan for TDS –across – All sections, use upto 3 years

Even today, some companies are still depositing TDS, by 5 to 20 challans every month.

Dear Members,

This is an old news for some. But a BIG NEWS for many even now.

TDS compliance has a lot of problems. We know that

But…  Thankfully, Govt has already made that a bit easy.

You can Deposit all your TDS for different sections by one single Challan. That is a good relief for all of you. All Assessees, be it company, Firm, Proprietorship etc

CPC (TDS) has issued an advisory communication to all deductors who have used multiple challans in a month for payment of TDS. In its advisory, CPC (TDS) has discussed about three main points:

Payment of Tax Deducted under different sections of the Income Tax Act, 1961

1. You can deposit TDS-Salary , TDS Contractor and TDS Professional by one single challan
2. You can deposit TDS-Corporate and non corporate by one single challan

Example: The challan used for payment of TDS relevant to Section 192 of the Act can also be used for the purpose of reporting tax deposited under Section 194 of the Act also.

Now, with the new revised software, (Situation after Financial Year 2012-13) is that, Section quoted in Challan, at the time of depositing Tax deducted/ collected is irrelevant for the purpose of consumption in TDS Statement.

Payment of Tax Deducted for different Assessment Years:

In case tax has been deposited more than the required tax deducted at source for a particular Assessment Year, the excess amount of tax can be claimed in the following quarters of the relevant year. The balance amount if any, can be carried forward to the next year for claim in the TDS statement.

Example: If excess payment of Tax has been made in Quarter 1 of financial year 2013-14, the same can be used for Quarter 2, 3 &4 of F.Y. 2013-14 as well as for Q1 to Q4 of F.Y.2014-15. The excess amount of tax paid in Q1 of F.Y.2013-14 can also be used for payment of tax default of Q1 to Q4 of F.Y.2012-13.

Different challans used for the purpose of reporting multiple Deductees associated with different branches with same TAN:

The deductor may have used multiple challans for reporting multiple deductees associated with different branches, in the TDS Statement.

A single challan can be used for the purpose of reporting Tax Deducted for such deductees.

Example: If a company, has multiple branches with same TAN, payment of Tax Deducted can be made by a single challan and all the deductees can be tagged using the same.

So,

Based on the above information, you may use a single challan in a month towards payment of Tax Deposited. For any assistance, you can also write to ContactUs@tdscpc.gov.in or call Income tax dept toll-free number 1800 103 0344.

Situation prior to Financial Year 2012-13

No change was possible, And Consumption of Challan in TDS Statement on the basis of Section quoted in the Challan details

Core Benefits

•No need to make Multiple Payments,

•You can also pay round figure Rs 5 lakhs,

•You can “pay now” and “adjust” later

.

 

Example

Suppose you have monthly approximate outgo of Rs 5,00,000.

Suppose some vendor bills are yet to be received

Or

Some Bills are yet to be passed

Or

Suppose the accountant in charge is “on leave to his village”

Simply, deposit a lumpsum say Rs 5,00,000 before the 7^th of every month. And you can settle the things during e-filing

Better pay extra, that you can use in next months ( upto 1 next financial year )

That is a good News. Saves a lot of time. Lot of data entry. Lot of online payment time, and a lot of hassles.

Read an article on same topic at: https://taxguru.in/income-tax/single-tds-challan-purposesanalysis.html

CBDT Source :  https://www.voiceofca.in/siteadmin/document/CBDTCircularonSingleTDSChallan.pdf

With Regards, Puneet Gupta and Sangeet Gupta, and all MLG Team members

If you have doubts you can contact us … this will let you know your Risks, your clarity, your safety, what is right, and what is not right, in your kind of business situation, Contact us

Our main site is www.mlgassociates.in , and and other site is : www.mlgassociates.org,

Income earned from providing IT services to Indian customers is taxable in India due to use of service in India: ITAT

The Income Tax Appellate Tribunal (ITAT ) Kolkata held that Income earned from providing IT services to Indian Customers is taxable in India because the service is used in india.

Assessee, Metso Outotec OYJ filed its return of income electronically and declared income of Rs.4,05,940/- and Rs.2,33,61,680/- in A.Y. 2018-19 and 2020-21 respectively. Thereafter, the case of the assessee was selected for scrutiny assessment in both the years and accordingly notice under Section 143(2) was issued and served upon the assessee.

The assessee has provided IT Services to Indian customers during the relevant financial year. During the assessment proceedings assessee contended that income from IT Services in pursuance of a Service Agreement with Outotec India Private Limited.

However, the Assessing Officer was not satisfied with the contention of the assessee and he proposed the addition.

The assessee filed objections before the Dispute Resolution Panel (DRP) and the DRP has rejected the contention of the assessee and upheld the levy of taxation on the alleged receipt for sale of IT Services as FTS.

During the proceedings before the bench KM. Gupta, counsel for assessee submitted that Assessee has no permanent establishment in India and the services were performed outside India in Finland. Therefore, these receipts in lieu of IT Services are not taxable as FTS in the hands of the assessee.

Guru Bhashyam, Counsel for the revenue supported the decision of the lower authorities.

After considering the facts submitted by both parties, the two member bench of Rajesh Kumar (Accountant Member) and Rajpal Yadav (Vice President) observed that assessee has no permanent establishment in India and these services were also rendered outside India but the services has been used in India and, therefore, it is taxable in India.

case : Metso Outotec OYJ vs Deputy Commissioner of Income Tax CITATION: 2023 TAXSCAN (ITAT) 2254

Counsel for Appellant: Shri KM. Gupta, & Shri R. Malhotra Counsel for Respondent: Sri Guru Bhashyam

Link :  https://www.taxscan.in/income-earned-from-providing-it-services-to-indian-customers-is-taxable-in-india-due-to-use-of-service-in-india-itat/323483/

Additional Effect : TDS is a MUST in this case / Such cases by the Indian company

TDS : tax deduction at source, is a must, note the DTAA, none the less.

With Regards, Puneet Gupta and Sangeet Gupta, and all MLG Team membersIf you have doubts you can contact us … this will let you know your Risks, your clarity, your safety, what is right, and what is not right, in your kind of business situation, Contact us

Our main site is www.mlgassociates.in , and and other site is : www.mlgassociates.org,