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...

CBDT via  Circular No. 13/2021 dated 30th June 2021  has issued clarifications w.r.t. Sec. 194Q of Income Tax Act, 1961 which deals with TDS on purchase of goods. Here are some of the key points of circular : TDS u/s 194Q will not be applicable on any sum credited or paid before 1st July 2021. TDS under section 194Q is to be charged on amount net of GST,  if charged separately. However for section 206C(1H), GST is to be included. Transactions on recognised exchanges   exempted from 194Q. Hierarchy of section 194-O, 194Q and Section 206C(1H) clarified. If section 194-O is applicable to a transaction then 194Q and 206C(1H) will not apply. If 194Q is applicable then section 206C(1H) shall not be applicable. If section 194-O and 194Q are not applicable section 206C(1H) will be applicable. Turnover/ Gross receipts of 10 crore of buyer for applicability of this section 194Q will mean Turnover/ Gross receipts in business only . Hence receipts by way of rent, interest , capi...

Income tax exemptions and due dates extension via  Press Release dt. 25th June 2021 CBDT has allowed the following exemptions in order to provide relief to taxpayers owing to COVID-19 pandemic: Amount received by a taxpayer for medical treatment from employer or from any person for treatment of Covid-19 during FY 2019-20 and subsequent years is exempted from income tax. Ex-gratia payment received by family members of a person from the employer of such person or from other person on the death of the person on account of Covid-19 during FY 2019-20 and subsequent years is exempt from income tax. The exemption shall be allowed without any limit for the amount received from the employer and the exemption shall be limited to ₹ 10 lakhs in aggregate for the amount received from any other persons. Further, certain due  dates are extended as under :     Particulars Original due date / Previously    Extended Due date Extended due date ...

  Circular regarding use of functionality under Section 206AB and 206CCA of the Income-tax Act, 1961 Finance Act, 2021 inserted two new sections 206AB and 206CCA in the Income-tax Act 1961 (hereinafter referred to as "the Act") which takes effect from 1st day of July, 2021. It can be seen that the tax deductor or the tax collector is required to do a due diligence of satisfying himself if the deductee or the collectee is a specified person. This can lead to extra compliance burden on such tax deductor or tax collector. To ease this compliance burden the Central Board of Direct Taxes is issuing a new functionality " Compliance Check for Sections 206AB & 206CCA ". This functionality is made available through reporting portal of the Income-tax Department. The tax deductor or the collector can feed the single PAN (PAN search) or multiple PANs (bulk search) of the deductee or coIIectee and can get a response from the functionality if such deductee or collect...

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...