Income Tax

Sharing of ITR data with GST Department by CBDT

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CBDT issued an order ( F. No. 225/105/2019/ITA.II dated 30th April, 2019) specifying the Income Tax authority for furnishing information in respect of assessees to the Nodal officer, GSTN.

The text of the order is given below:

Order

In exercise of powers conferred under section 138(1)(a) of the Income tax Act, 1961 (‘Act’), for purposes of sub-clause (i) of section 138(1)(a) of the Act, the Central Board of Direct taxes (‘CBDT’) hereby directs that Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), New Delhi shall be the specified income-tax authority for furnishing information respecting assessees to the Nodal Officer, Goods and Services Tax Network (‘GSTN’).

2. The data/information to be furnished by the specified income-tax authority shall be:

(a) Request based exchange of data, wherein, important financial fields which are captured in the Income Tax Returns (ITRs) such as (i) status of filing of ITR; (ii) turnover; (iii) gross total income, (iv)turnover ratio; (v)GTI range; (vi) turnover range and (vii) any other field, the modalities of which shall be decided by the concerned specified authorities.

(b) Spontaneous exchange of data, the modalities of which shall be decided by the concerned specified authorities.

(c) Automatic exchange of data, the modalities of which shall be decided by the concerned specified authorities.

While furnishing the information, the specified income-tax authority shall form an opinion that sharing of such information is necessary for the purposes of enabling the specified authority in GSTN to perform its functions under the Goods and Services Tax.

3. To facilitate the process of furnishing information, Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) would enter into a Memorandum of Understanding (‘MoU’) with nodal officer, GSTN, which inter-alia would include modalities of exchange of data, maintenance of confidentiality, mechanism for safe preservation of data, weeding out after usage etc. The time line for furnishing information shall also be decided by Pr. Director General of Income-tax (Systems) or Director General of Income-tax (Systems) in consultation with concerned nodal officer and included in the said MoU.

4. A copy of MoU shall be forwarded to this division for record purposes.

5. This issues with the approval of Chairman, CBDT.

A similar order is expected from CBIC also in the near future,

Sharing of ITR data with GST Department by CBDT

Income tax TDS rates – FY 2019-20

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TAX DEDUCTED AT SOURCE – RATES FOR ASSESSMENT YEAR 2019-20
Sl. No.Nature of PaymentSectionBasic Cut-off (Rs.) p.a.TDS Rate: Individual/HUFTDS Rate:Other than Individual/ HUFTDS Rate: No PAN/ Invalid PAN
1Payment of Salaries by Employers192Slab rateSlab rateNot applicable30%
2Premature payment by PF Organization from EPF A/c (i.e. before 5 Years).192A50,000.0010%Not applicable20%
3Payment of Interest on Securities by company.19310,000.0010%10%20%
4Payment of Dividend other than dividend as referred to Section 1150 by company (i.e. Dividend on which Dividend Distribution Tax is notpaid)1942,500.0010%10%20%
5Payment of Interest by bank194A40,000.00 (Non Sr. Citizen) 50,000.00 (Sr. Citizen)10%10%20%
6Payment of Interest by others194A5,000.0010%10%20%
7Payment of prize from Wining from Lotteries by any person.194B10,000.0030%30%30%
8Payment of prize from Wining from Horse Race by any person.194B10,000.0030%30%30%
9Payment to Contractors by any person194C30000(Single nill) or 1 Lakh aggregate bills during the year.1%2%20%
10Payment to Transporter Covered u/s. 44E and submit declaration in prescribed format. (i.e. owning less than 10 goods carriages)194C–0020%
11Payment to Transporter not covered U/s.44E (i.e., owning more than 10 goods carriages)194C30000 (single bill) or 75000 aggregate bills during the year1%2%20%
12Payment of Insurance Commission to agents by Insurance Company.194D15,000.005%10%20%
13Payment in respect of maturity of Life Insurance Policy by life insurance Company194DA1 Lakh1%1%20%
14Payment to NRI sportsman or association by any person.194E–20%20%20%
15Payment out of deposit under National Saving Scheme (NSS)194EE2,500.0010%10%20%
16Payment with respect to repurchase of units by Mutual FundCompanies.194F–20%20%20%
17Payment of Lottery Commission194G15,000.005%5%20%
18Payment of commission or Brokerage194H15,000.005%5%20%
19Payment of rent on land, building, furniture and fittings.1941240,000.0010%10%20%
20Payment of rent on plant, machinery or equipments.1941240,000.002%2%20%
21Payment made on account of transfer of immovable property other than agricultural land194IA50 Lakh1%1%20%
22Rent payable by individual not covered u/s. 194I for land, building, F&F1941B50,000.00 PM5%5%20%
23Payment of Professional fees other than call centers194J30,000.0010%10%20%
24Payment of Professional fees to call centers194J30,000.002%2%20%
25Compensation on transfer of certain immovable property other than Agricultural Land194LA250,000.0010%10%20%
Income tax TDS rates – FY 2019-20

Income tax returns: Due date extended..

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CBDT extended the due date for filing returns for those whose accounts are need to be extended to 07th November, 2017. Earlier they had extended the due date to 30th October, 2017 from 30th September, 2017.

To see notification, please see the link below:

Income tax returns: Due date extended..

Income Tax: Extension of due date for filing returns

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CBDT had extended the due date for filing income tax return and submission of audit report under Income tax Act for tax audit assessees who are liable to get their accounts audited, Company, working partners of firms covered under tax audit etc to 31st October, 2017 from 30th September, 2017. This is in view of the delay in submission of GST returns for July and August 2017, which is also coming in the month of September.

To view the CBDT order dated 31-08-2017, please click the link below:

ITR due date extension

 

Income Tax: Extension of due date for filing returns

TDS: No TDS on GST paid/payable on Services

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CBDT vide circular no.23/2017 dated 19-7-2017 amending circular no. 1/2014, which states that wherever in terms of the agreement or contract between the payer and the payee, the Service Tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVIl-B of the income tax Act, 1961 (the Act) on the amount paid or payable without including such Service Tax
component.

In the circular no. 23/2017, the words service tax is substituted by GST. It is also mentioned that GST includes CGST, SGST & IGST. The same will be applicable only in case GST is mentioned separately in the invoice.

To see the notification please click the link below:

circular_23_2017

TDS: No TDS on GST paid/payable on Services

Cost Inflation Index for Capital Gain

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CBDT notifies Cost Inflation Index with base year as 2001-2002 vide notification 44/2017 dated 05th June, 2017.

Cost Inflation Index for Capital Gain

Sl no. Financial Year Cost Inflation  Index

1

 2001-02 100

2

 2002-03 105
3 2003-04

109

4

 2004-05 113
5 2005-06

117

6

 2006-07 122

7

 2007-08 129
8 2008-09

137

9

 2009-10 148
10 2010-11

167

11

 2011-12 184
12 2012-13

200

13

 2013-14 220
14 2014-15

240

15

 2015-16 254
16 2016-17

264
17 2017-18

272

To view the notification, click the link below:

notification44_2017 (1)

Cost Inflation Index for Capital Gain

Income Tax: Changes w.e.f. 01-04-2017

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The details of major changes that will take effect from 01st April, 2017 is given below:

  1. Limit for payment of Expenses: 

Limit for payment of expenses (both capital and revenue) reduced from Rs.20000 to Rs.10000 per day in aggregate per person.  Capital expenses paid in cash beyond the said limit will not be taken into account for depreciation purposes.  However, the cash payment limit for lorry fright etc. remains the same at Rs.35000.

2. Penalty for receiving amount of Rs. 2 Lakhs or more

     No person shall receive an amount of two lakh rupees or more, by cash (Sec. 269ST)

  • in aggregate from a person in a day; or
  •  in respect of a single transaction; or
  •  in respect of transactions relating to one event or occasion

The penalty for violation of above is to be a sum equal to the amount of such  receipt. The existing provisions (in vogue from 1.6.2016) relating to collection of TCS @ 1% on cash sales exceeding Rs.2 lakhs (Rs.5 lakhs, in the case of jewellery) are deleted. Consequently, there is no need to collect TCS on cash sales exceeding Rs.2 lakhs.  Straight away it will attract equal amount penalty now.

3. Net profit for presumptive taxation cases (below Rs.2 crores turnover cases)

👉 For Non Cash Sales (through Digital, Online, cheque, Bank etc.)  : Net Profit will be taken as 6% of Turnover/Gross Receipt.
👉 For Cash Sales : Net Profit will be taken as 8% of Turnover/Gross Receipt.
4.  Change in tax rate, surcharge for individuals
Tax Exemption limit is Rs.2,50,000/- (same as earlier) –
👉 After that, upto Rs.5 lakh, Tax Rate is 5% (earlier it was 10%).  Tax rebate of maximum Rs.2500 will be allowed, for total income upto Rs.3.50 lakhs(earlier it was Rs.2000 for total income upto Rs.5 Lakhs).
👉 Individuals having total income exceeding Rs.50 lakhs but below Rs.1 crore, are to pay surcharge @ 10% of the tax.  Those having total income exceeding Rs. 1 crore shall continue to pay surcharge @ 15%.
5. Corporate Tax
Corporate tax rate for the account year 2017-18 for companies with annual turnover up to Rs. 50 crores (in the account year 2015-16) is reduced to 25%.  No change in firm tax rate of 30%.
6. Capital Gain in respect of Land & Buildings
  • Periodicity for long term Capital Gain is reduced from 3 years to 2 years.
  • Base year shifted from 01.04.1981 to 01.04.2001 for all assets including Immovable property.

7. TDS on rent by individual who are not subject to tax audit requirements

Payment of rent by Individual or HUF is Rs.50,000 or above in a month, then TDS will be applicable @ 5%. The tax shall be deducted on such income at the time of credit of rent, for the last month of the previous year or the last month of tenancy if the property is vacated during the year, as the case may be, to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier

8. Sec. 80G Eligible Donations

Donations made exceeding Rs.2000 will be not be eligible for deduction under section 80G, unless these are made using modes other than cash.  Consequently, trusts accepting 80G donations may advise their donors to give donations exceeding Rs.2000 vide cheque / RTGS / digital modes.

9. Sale of unquoted shares

If the Consideration for transfer of share of a company (other than quoted share) is less than the Fair Market Value (FMV) of such share determined in accordance with the prescribed manner, the FMV shall be deemed to be the full value of consideration for the purposes of computing income under the head “Capital gains”.

10. Fee for Delayed filing of Return of Income

From financial year 2017-18, if Return is not filed within due date, late fee of Rs.5000 for delay up to 31st December, and Rs. 10000 thereafter.

11. Quoting Aadhar Number in Return of Income

Every person who is eligible to obtain AADHAR number, should quote such number, on or after 1 July 2017, in the Return of income. Furthermore, every person who has been allotted PAN as on 1st July 2017 must intimate the AADHAR number to the Tax Authority, failing which, PAN allotted to such person shall be deemed to be invalid. Please take necessary steps to make changes in Aadhar if your name is not exactly matching with the details in PAN.

12. Modification in object clause in 12AA registered Trust

Where a trust or an institution has been granted registration under section 12AA or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996] and, subsequently, it has adopted or undertaken modifications of the objects which do not conform to the conditions of registration, it shall be required to obtain fresh registration by making an application within a period of thirty days from the date of such adoption or modifications of the objects in the prescribed form and manner.

 

Income Tax: Changes w.e.f. 01-04-2017