Extension of various time limits under direct tax

Monthly Archives: June 2020

Extension of various time limits under direct tax

In order to provide relief to taxpayers goverment issued a notification on 24th june 2020:-

  • The time for filing of original as well as revised income tax returns for the FY 2018-19 has been extended to 31st July 2020.
  •  Due date for income tax return for the FY 2019-20 has been extended to 30th November 2020. Hence the returns of income which are required to be filed by 31st july  and 31st oct 2020 can be filed upto 30th November. Consequently, the date for furnishing tax audit report has also been extended to 31st october 2020.
  • The date for making various investment/payment for claiming deduction under chapter-VIA-B of the IT act which includes section 80C (LIC, PPF, NSC etc.), 80D, 80G etc. has also been further extended to 31st July 2020. Hence the investment/payment can be made upto 31st july for claiming deduction under these sections for FY 2019-20.
  • In order to provide relief to small and middle class taxpayers,the date for payment of self assessment tax in the case of a taxpayer whose self assessment tax liability is upto Rs 1 Lakh has also been extended to 30th November 2020. However it is clarified that there will be no extension of date for the payment of self assessment tax for the taxpayers having self assessment tax liability exceeding Rs. 1 Lakh. In this case the whole of self assessment tax shall be payable by due dates specified in the income tax act 1961 (IT act) and delayed payment would attract interest under section 234A of the IT Act.
  • The furnishing of the TDS/TCS statements and issuance of TDS/TCS certificates being the prerequisite for enabling the taxpayers to prepare thier return of income for FY 2019-20, the date for furnishing TDS/TCS statement and issuance of TDS/TCS certifiactes pertaining to the FY 2019-20 has been extended to 31st July 2020 and 15th August 2020 respectively.
  • The reduced rate of interest of 9% for delayed payments of taxes, levies etc. specified in the ordinance shall not be applicable for the payments made after 30th june 2020.
  • The date for passing of order or issuance of notice by the authorities and various compliaces  under various Direct taxes & Benami Law which are required to be passed/issued/made by 31st december 2020 has been extended to 31st March 2021. Consequently, the date for linking of Aadhar with PAN would also be extended to 31st June 2020.

MASTER UPDATE

1️⃣ *Income Tax:*
*ITR-1 and ITR-4 for FY 2019-20* can be filed through *direct mode* after *logging* on Income Tax Efiling site.
2️⃣ Goods and Services Tax:*
 CBIC has *notified* that *a Company* shall also be *allowed to file GSTR 3B* Return during the period *from 21.04.2020 to 30.09.2020* and *GSTR 1* Return during the period from *27.05.2020 to 30.09.2020* verified through *Electronic Verification Code (EVC)*. Now, GST Return of a Company can be filed *without DSC*
 GST Tech has *clarified* that some users are facing *intermittent issue in login*, It will be *resolved shortly* as *tech team is working* on it.
3️⃣ Corporate & Allied Laws:*
 MCA has *extended* the date for companies passing *ordinary and special resolution* through *postal ballot/e-voting* through *registered emails* requiring the *approval of members*, *without holding physical general meeting* from *30.06.2020 to 30.09.2020*.
MCA has *clarified* that where the *date of creation/modification* of charge is *before 01.03.2020* and the *timeline for filing* such form had *not expired* or the *date* of filing *falls* on any *date between 01.03.2020 to 30.09.2020* (both dates inclusive). In that case, the *said period shall not be counted* as *delay in filing*. The Scheme is *not applicable* on Satisfaction of Charge (CHG-4).
*B. KEY PRACTICAL TAKE-AWAYS:*
1️⃣ Income Tax:*
 *Before filing* Income Tax Return for *FY 2019-20*, ensure that *TDS deducted* from your income is *showing in your TDS Statement (26AS)*. If you *file* the return *without claiming* of all TDS, it will be *cause of receiving notice* from the department *due to difference in TDS amount* as well as *financial loss*. So *wait* till the updation of 26AS.
If you have *paid the challan of TDS* under the *wrong Section*, Don’t worry TDS challans *deposited* under the *one section* can be *adjusted* with the *another section* (e.g: TDS Challans of Section 194J can be *adjusted* with the Section 194I).
TDS Returns can also be *filed through online mode (without the “fvu” submission to TIN-FC)* at *efiling portal* only. Register as *“Tax Deductor”* at *efiling portal* and *upload “fvu” file* in zip format by *signing with DSC signature* facility.
2️⃣ *Goods & Services Tax:*
 Although *ITC* in respect of *Capital Goods* is *allowed 100%* in very *1st year* in GST, yet in case of sale of *capital goods earlier than 5 years’* use, the GST to be payable *HIGHER* of Applicable GST on selling price *OR* *ITC allowed (-) 5%* for every quarter used or part thereof.
3️⃣ *Corporate & Allied Laws:*
 *Secretarial Audit* is *applicable* to every *listed company* or every *public company* having *paid-up share capital => Rs. 50 Crores* or having *turnover => Rs. 250 Crores* or *EVERY COMPANY* having outstanding *loans or borrowings => Rs. 100 Crores*. The *figure* of share capital, turnover and loans shall be taken from *latest audited* financial statement.
# *CARO, 2020 is not applicable* for *FY 2019-20* so *reporting* shall be done as per *CARO, 2016*.
 *C. UPCOMING DUE DATES:*
1️⃣ *Income Tax:*
 *30.06.2020* is the due date *to file Form 61A (SFT Compliance)* in case you have such *Significant Financial Transactions* such as *issuance of equity shares for more than INR 10 lakhs*.
*Note -* In case of *no such SFT transaction*, *Tax Audit assessees* are at a mandate *to file “Preliminary SFT Reponse” at e-filing portal* by said due date.
*30.06.2020* is the due date *to file TDS/TCS Returns for Q4 (F.Y. 2019-20)*.
*Note-* In case of *delayed payment* of TDS, interest rate is *0.75% for the month* and part of)
 *30.06.2020* is the due date *to file Belated ITR/ Revised ITR for FY 2018-19*.
*Note -* *ITR for FY 2017-18 cannot be filed* now as the due date to file lapsed.
2️⃣ *Goods and Services Tax:*
 *GSTR-3B Due Date:*
*29.06.2020* for *Feb and March* and *30.06.2020* for *April* month for the taxpayers having *turnover more than 1.5 crores* and *upto Rs. 5 Crores*.
️ *30.06.2020/03.07.2020/06.07.2020* for *Feb, March and April month* for the taxpayers having *turnover upto Rs. 1.5 crores*.
*30.06.2020* is last date for the month of *Feb, March and April 20 to file GSTR-1 for all taxpayers*.
3️⃣ *Corporate & Allied Laws:*
 MCA has announced a *“Moratorium Period” from 01.04.2020 to 30.09.2020* for filing of *ROC Forms and no additional fees* will be *charged for such period* due to late filing of any form due within this period

MASTER UPDATES

1️⃣ Income Tax:*
*Cost Inflation Index* has been notified by CBDT for *FY 2020-21* to be “301”.
2️⃣ Goods and Services Tax:*
 *Recommendations made by 40th GST Council Meeting:*
❇️ *Late Fee for non-filing of GSTR-3B* for the tax period from *July’17 to Jan’20* has been *waived* in case of *NIL* tax liability and *reduced to Rs. 500* maximum *per return* if there is any liability.
❇️ *No/reduced late fee facility* can be availed for the period from *July’20 to Sept’20*.
❇️ Applicability of *reduced rate of interest @ 9%* is extended till *30.09.2020* for taxpayers having *turnover upto Rs. 5 Crores* and return is *not filed* till extended due date (30th June or 6th July 2020).
❇️ Due date of Filing *GSTR-3B Return* for the month of *May, June and July 2020* has been extended till *September, 2020*.
❇️ GST Registration *cancelled till 12.06.2020* can be *restored* by filing of *revocation application* upto *30.09.2020* (earlier it was 30.06.2020).
*Note- These recommendations shall be effective from the date of notification*
 Now *NIL Form GSTR-3B* can be filed *through SMS* as well as through online mode on GST Portal (For detailed instruction, refer *FAQs released* by Department).
 E-way bills  *generated on or before 24.03.2020* and validity of which has been *expired on or after 20.03.2020*, in that case *validity of e-way bill* have been extended *till 30.06.2020*.
3️⃣ Corporate & Allied Laws:*
 *Amendment made in Insolveny and Bankruptcy code* (IBC) –  *No application* for *initiation of corporate insolvency resolution* process of a corporate debtor be *filed* for any *default arising on or after 25.03.2020* for next *6 months*.
*B. KEY PRACTICAL TAKE-AWAYS:*
1️⃣  Income Tax:*
 To compute *Advance Tax for FY 20-21*, must check income tax rate to be applied to *companies* and if your company is deciding *to take 22% tax rate*, in that case some *deductions u/s 35, 35AD, 32AC and additional depreciation u/s 32 etc.* and *unabsorbed depreciation* and *carry forward loss* related to these provisions shall not allowed.
 if your company is *going with the above tax rate*, *MAT* will *not be applicable* and in that case *MAT Credit of earlier years* will *not be able to claimed*.
 To compute *Advance Tax* for FY 20-21, consider *reduced MAT Rate* of 15%.
2️⃣ Goods & Services Tax:*
 If you have paid *GST on advance received* against future *supply of services*, show it in *tax liability (advance received) box of GSTR-1* and when you raise *final invoice* in that case this should be *adjusted with GST paid* on advance and to be *shown in B2B/B2C supplies* as well as.
3️⃣ Corporate & Allied Laws:*
 *Internal Financial Control (IFC)* Report is *not* required for *One Person Company (OPC)*, *Small Company* and *Private Company* having *turnover less than Rs. 50 Crores* and *borrowings less than Rs. 25 Crores* at any point of time during the FY.
*C. UPCOMING DUE DATES:*
1️⃣ Income Tax:*
 *30.06.2020* is the due date *to file Form 61A (SFT Compliance)* in case you have such *Significant Financial Transactions* such as *issuance of equity shares for more than INR 10 lakhs*.
*Note -* In case of *no such SFT transaction*, *Tax Audit assessees* are at a mandate *to file “Preliminary SFT Reponse” at e-filing portal* by said due date.
 *15.06.2020* is the due date *to pay Advance Tax (1st Installment)* for FY 2020-21.
*30.06.2020* is the due date *to file TDS/TCS Returns for Q4 (F.Y. 2019-20)*.
 *30.06.2020* is the due date *to file Belated ITR/ Revised ITR for FY 2018-19*.
*Note -* *ITR for FY 2017-18 cannot be filed* now as the due date to file lapsed.
2️⃣ Goods and Services Tax:*
 *GSTR-3B Due Date:*
✅ *29.06.2020* for *Feb and March* and *30.06.2020* for *April* month for the taxpayers having *turnover more than 1.5 crores* and *upto Rs. 5 Crores*.
✅ *30.06.2020/03.07.2020/06.07.2020* for *Feb, March and April month* for the taxpayers having *turnover upto Rs. 1.5 crores*.
## *30.06.2020* is last date for the month of *Feb, March and April 20 to file GSTR-1 for all taxpayers*.
3️⃣ *Corporate & Allied Laws:
# MCA has announced a *“Moratorium Period” from 01.04.2020 to 30.09.2020* for filing of *ROC Forms and no additional fees* will be *charged for such period* due to late filing of any form due within this period

For TDS/TCS Payment

For TDS/TCS Payment.
👇👇
Due Date of TDS/TCS Pymt for May 2020 : 7th June 2020.
Due date is not extended.
And 👉 Interest will be charged at only @ 0.75% pm instead of 1.50% pm in normal cases, (for payments upto 30th June 2020).
Pay as per your convenience before due date without interest or  upto 30th June,2020 with interest.
MLG Team
Always at your service
🌹🌹🌹🚩

Labour Welfare Fund for 2019 (Jan’19 to Dec’2019)*

Labour Welfare Fund for 2019 (Jan’19 to Dec’2019)*

Have you paid already??
If yes ——- Good👏👏
If Not paid 🤔 ⁉️
🟢 don’t worry
👉Last date extended till *30.06.2020* 💐💐
MLG Team suggest you to check with your Accounts Department and see that it has been duly deposited.
😊
MLG Team
Always at you service
🌹🌹🌹🚩
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