Nitin B.S Bhandari & co.

14/11/2020

21/09/2019

Important Tax Update:

*INCOME TAX NEWS BULLETINS*

• The new provision in the Income Tax Act, which will allow domestic companies to pay income tax at the rate of 22 percent, will be effective from FY19-20. It is subject o condition that they will not avail any incentive or exemptions.

• GOI Will give MAT relief for those opting to continue paying surcharge and cess. MAT has been reduced to 15 percent from 18.5 percent for companies who continue to avail exemptions and incentives

• Finance Minister also announced that effective tax for new companies shall be 17.01 percent, including cess and surcharge. Companies enjoying tax holidays would be able to avail concessional rates post the exemption period.

• Total revenue foregone by undertaking today's measures is Rs 1.45 lakh crore per year,

• For listed companies which made announcement for public buyback before July 2019 it is provided that tax on buyback on shares of such companies will no be charged

• To stabilise flow of funds into the market the enhanced surcharge announced in Budget 2019 will not apply on capital gains arising on sale of any security, including derivatives by foreign portfolio investors (FPI)

• To attract investment in manufacturing, local companies incorporated after October 2019 will pay tax at 15 percent

• Effective corporate tax rate after surcharge to be 25.17 percent

• *Corporate tax rate to be 22% without exemptions*, inclusive of surcharge and cess. No Minimum Alternate Tax (MAT) applicable on such companies

• GOI today propose to slash corporate tax rate for domestic companies and new domestic manufacturing companies. Ordinance for cutting tax rate has been passed

14/12/2018

*ADVANCE TAX - Helpful Points*

“The due date of 3rd Installment of Advance Tax is *15.12.2018* – 75%"

# # No Need to pay Advance tax if your tax payable does not exceed INR 10,000.

# # If you are to be taxed under MAT, then also you need to pay Advance tax.

# # You can Set-off MAT Credit available, carried forward losses, unabsorbed depreciation (from last ITR).

# # Advance tax in case of 44AD/ 44ADA assessees is payable at once on 15.03.2018.

# # If you are an employee and sufficient TDS has not been deducted from your Salary, you have to pay Advance Tax.

# # Instead of EC & SHEC @ 3%, a new Health and Education Cess (HEC) @ 4% is to be levied.

# # Domestic Companies having Turnover upto INR 250 crores in FY 16-17 will have to compute tax at the rate of 25% instead of 30%.

# # 10% tax on Long-term Capital Gains (LTCG) on sale of Listed Shares if gain exceeds INR 1,00,000.

# # Rate of depreciation shall be restricted to the maximum of 40%.

# # Expenditure on In-house Scientific Research under Section 35(2AB) shall be restricted to 150%.

21/07/2018

GST Council Updates

1. Quarterly Returns approved for taxpayers with turnover less than Rs 5cr ( *tax payments to continue on monthly basis*)
2. Sanitary Napkins exempted from GST going forward
3. No decision on 1% sugar cess
4. GST on bamboo flooring reduced to 12%
5. GST on hotels would now be on actual tariff & not declares tariff
6. Ethanol for Oil Marketing Companies now at 5% vs 18% earlier
7. 5% GST ceiling on footwear raised from Rs 500 to Rs 1000
8. GST on paints & varnishes, wall putty cut from 28% to 18%
9. GST on all leather items cut from 28% to 18%
10. GST on consumer electronics - *TV (up to 27"), Washing Machine, Refrigerator, mixer, juicer, grinder* cut from 28% to 18%
11. GST on special purpose vehicles, work truck, trailer cut from 28% to 18%

12/04/2018

LATE FEE ON DELAY IN FILING INCOME TAX RETURN FOR THE YEAR ENDED 31ST MARCH, 2018 (ASST.YR: 2018-19) UNDER SECTION 234F FOR NON AUDIT CASES:

1. If Return filed during 01/04/2018 – 31/07/2018 : Late Fee NIL

2. If Return filed during 01/08/2018 – 31/12/2018 : Late fee Rs. 5000 (Five Thousand)

》If total income does not exceed Rs.5 Lakhs then this Late fee will be restricted to Rs.1000 only.

3. If Return filed during 01/01/2019 – 31/03/2019 : Late Fee Rs.10000 (Ten Thousand).

》If total income does not exceed Rs.5 Lakhs then this Late Fee will be restricted to Rs.1000 only.

》Better Get your ITR filed by 30/06/2018
to avoid last moment panic due to any technical problem such as AADHAR mismatch, server problem, personal problem, etc.

》TIME FOR LINKING AADHAAR WITH PAN IS EXTENDED TILL 30TH JUNE 2018.

19/10/2017

31/07/2017

Due Date for filing of Income Tax Returns for F.Y. 2016-17 (A.Y. 2017-18) has been extended from 31st July, 2017 to 5th August, 2017.

07/07/2017

GST FACTS AND REALITIES