CBDT deffer GST and GAAR reporting in tax audit by one year
Income Tax Circular No. 10/2020
Order under section 119 of the Income-tax Act, 1961
Section 44AB of the Income-tax Act, 1961 read with rule 6G of the Income-tax Rules, 1962 requires specified persons to furnish the Tax Audit Report along with the prescribed particulars in Form No. 3CD. The existing Form No. 3CD was amended vide notification no. GSR 666(E) dated 20th July, 2018 with effect from 20th August, 2018. However, the reporting under clause 30C and clause 44 of the Tax Audit Report was kept in abeyance till 31st March, 2019 vide Circular No. 6/2018 dated 17.08.2018, which was subsequently extended to 31.03.2020 vide Circular No. 9/2019.
Several representations were received by the Board with regards to difficulty in implementation of reporting requirements under clause 30C and clause 44 of the Form No. 3CD of the Income-tax Rules, 1962 in view of the Global Pandemic due to COVID-19 virus and requested for deferring the applicability of the above provisions.
The matter has been examined and in view of the prevailing situation due to COVID-19 pandemic across the country, it has been decided by the Board that the reporting under clause 30C and clause 44 of the Tax Audit Report shall be kept in abeyance till 31st March, 2021.
We all wish, TDS, TCS last dates should also have been extended.
However, probably, Govt also needs money to fight the Covid19. 🦠🦠🦠
So, in that background please read the message below
For TDS/TCS Payment.
Due Date of TCS Pymt for March :7th April 2020.
Due Date of TDS Pymt for March :30th April 2020.
Last date is not extended.
please pay, if you can
(MLG recommends this as well, at least on your best estimates)… if short, you pay balance later, and if excess, you can claim that in FY 20-21 returns easily, with no problem at all.
If you cannot pay due to any reason. Govt has given a Grand 50% Corona Discount.
And 👉 Interest will be charged at only @ 0.75% pm instead of 1.50% pm in normal cases, (for payments upto 30th June 2020).
In the view of the outbreak of COVID-19 the FM had announced various relief measures regarding statutory compliance related to Income Tax and GST. The FM passed an ordinance to give effect to these measures on the 31st of March 2020.
Previously, taxpayers had confusion if the date to make various investments for claiming deduction under Chapter-VIA-B of IT Act has been extended or not as the FM did not address the same in her press release. However, the Ordinance gives clarity on the same. Here is what the Ordinance states on the matter:
1. “The date for making various investment/payment for claiming deduction under Chapter-VIA-B of IT Act which includes Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), etc. has been extended to 30th June, 2020. Hence the investment/payment can be made up to 30.06.2020 for claiming the deduction under these sections for FY 2019-20.”
2. “The date for making investment/construction/purchase for claiming roll over benefit/deduction in respect of capital gains under sections 54 to 54GB of the IT Act has also been extended to 30th June 2020. Therefore, the investment/ construction/ purchase made up to 30.06.2020 shall be eligible for claiming deduction from capital gains arising during FY 2019-20.”
3. “The donation made to the PM CARES Fund shall be eligible for 100% deduction under section 80G of the IT Act. Further, the limit on deduction of 10% of gross income shall also not be applicable for donation made to PM CARES Fund. As the date for claiming deduction u/s 80G under IT Act has been extended up to 30.06.2020, the donation made up to 30.06.2020 shall also be eligible for deduction from income of FY 2019-20. Hence, any person including corporate paying concessional tax on income of FY 2020-21 under new regime can make donation to PM CARES Fund up to 30.06.2020 and can claim deduction u/s 80G against income of FY 2019-20 and shall also not lose his eligibility to pay tax in concessional taxation regime for income of FY 2020-21.
Good News. TDS rates on technical services, reduced from 10% to 2%.
See this Youtube Video released today by MLG team on this topic today ( as we work from home )
TDS Rate on:
“Technical services” Reduced to 2% only w.e.f. 1-4-2020
Important benefit out of Budget 2020 Finance Act 2020
Para 79. In section 194J of the Income-tax Act, in sub-section (1),–– (a) in the long line, for the words “ten per cent. of such sum”, the words and brackets “two per cent. of such sum in case of fees for technical services (not being a professional services, or royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic films and ten per cent. of such sum in other cases,” shall be substituted; (a) “professional services” means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration , or advertising or such other profession as is notified by the Board for the purposes of section 44AA or of this section; ba) “royalty” shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of section 9; (b) “fees for technical services” shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9; and it says Explanation 2.—For the purposes of this clause, “fees for technical services” means any consideration (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient or consideration which would be income of the recipient chargeable under the head “Salaries”. so, in our case Computer software development ( example : ERP Implementation) Technical training. ( example AMC of ERP )
Tax saving investments for FY 2019-20 under section 80C, 80D,80G etc. can be made till 30.06.2020 instead 31.03.2020.
What does this mean
This means that tax-saving investments in Equity Linked Savings Schemes (ELSS), Provident Funds (EPF and PPF), National pension Scheme Contributions (NPS) can be made till 30th June 2020 for the FY 2019-20.
What this doesn’t mean
This announcement does not mean that the financial year has been extended. It just means that the tax-saving actions for the FY 2019-20 which has ended on 31st March 2020 can be undertaken for an extended period as mentioned above.
This does not mean that all your tax-saving investments post 31st March 2020 will automatically be counted for the FY 2019-20. The investor can decide as to which FY a particular investment post 31st March 2020 is to be included in FY 2019-20.
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