Statutory Boost

Finance Act 2021 inserted a new section 194P which provided conditions for exempting senior citizens from filing Income Tax returns aged 75 years and above. CBDT via  Notification No. 99/2021 dated 2nd September 2021 has notified Income Tax (26th Amendment) Rules, 2021  which states the manner of availing exemption u/s 194P. The amendment rules have inserted a new Rule 26D which can be summarised as under : Furnishing of declaration by Senior Citizen in  Form 12BBA.  The form shall be submitted to specified bank in paper form duly verified. Specified bank shall, on receipt of Form,  compute Total income of senior citizen and deduct applicable taxes on it. While computing Total income, deductions under chapter VI-A shall be allowed on furnishing of evidences . Specified bank shall furnish such Form along with the evidences of deductions under Chapter VI-A to Principal Chief commissioner or Chief Commissioner of Income Tax. For Specimen of   Form 12BBA...

CBIC via  Notification No. 29/2021-Central Tax dt 30th July 2021  notifies 1st August 2021 as date on which Sec. 110 and Sec. 111 of  Finance Act, 2021  shall comes into force. Sec. 110 of the Finance Act, 2021 deals with omission of Sec. 35(5) of the CGST Act, 2017 which provides for audit of accounts by a Chartered Accountant under GST law. Sec. 111 of Finance Act, 2021 deals with amendment in Sec. 44 of CGST Act, 2017 which provides for submitting a self-certification reconciliation statement under GST law. Sec. 44 of CGST Act, 2017 shall be read as under: "44.  Every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person shall furnish an annual return which may include a self-certified reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year, with the audited annual financial stat...

Sec. 206AB and Sec. 206CCA had recently been introduced via Finance Act, 2021 which provides for higher rate of TDS/TCS in case of non-filer of returns which will be effective from 1 st July 2021. Let’s have a glimpse of both the sections:   Sec. 206AB Sec 206CCA Section particulars Special provision for deduction of tax at source for non filers of income tax return Special provision for collection of tax at source for non filers of income tax return Appli cability Applicable in case of person who:         (a)    Has not filed ITR for preceding 2 previous years whose t ime limit for filing ITR u/s 139(1) has been expired and         (b)     TDS/ TCS > ₹ 50,000 in each of above mentioned years. Non- appli cability (i)    In case where TDS is required to be ded...

CBIC has notified Sec 112 of Finance Act, 2021 via Notification No. 16/2021 – Central Tax dt. 1st June 2021  which provides for retrospective amendment of payment of Interest on Net Tax liability under CGST Act, 2017. As per Sec. 112 of the Finance Act 2021 : 112. In section 50 of the Central Goods and Services Tax Act, in sub-section (1), for the proviso, the following proviso shall be substituted and shall be deemed to have been substituted with effect from the 1st day of July, 2017 , namely:––  “Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be payable on that portion of the tax which is paid by debiting the electronic cash ledger.”.       ...