PKT & Associates

04/02/2020

Direct Tax Budget 2020 Changes:

The government has proposed a new income tax regime under Section 115BAC that comprises a significant change in the tax slabs rates. Taxpayers have been provided with an option whether they want to pay taxes according to the new regime or if they want to continue paying taxes according to the existing regime. However, a few taxpayers may not be able to switch back to the existing tax slab once they opt to follow the new one.
Under section 194J- fees for technical services, TDS has been reduced to 2% from 10%.
Tax audit threshold has been increased from Rs 1 crore to Rs 5 crore provided turnover/ gross receipts in cash does not exceed 5% during the previous year. Also, payment made in the P.Y in cash does not exceed 5%. For such taxpayers, the due date for tax audit has been extended to the 31st of October from the 30th of September.
Under Section 80EEA, the additional deduction of Rs.1.5 lakh for interest paid on home loans will now be allowed for the loans sanctioned till the 31st of March 2021.
DDT has been discontinued. Instead, the recipients of the dividend will have to pay tax at their applicable rate.
In the case of startups, employees possessing Employee Stock Option Plans (ESOPs) may defer paying taxes up to five years from the time of exercise, till the time they leave the startup, or until they sell their shares, whichever is earlier.
Eligible startups with a turnover of up to Rs 25 crore is permitted to deduct 100% of its profits for three continuous assessment years of seven years if the overall turnover is under Rs 25 crore. This limit is now increased to Rs 100 crore. Furthermore, the eligibility period to deduct is increased to 10 years from 7 years.
Section 194: Dividend paid by Indian companies, to a shareholder, who is resident in India, TDS @ 10% if the dividend amount exceeds 5000 during the FY.
Section 194K: Dividend paid by MF to a resident TDS 10% will be deducted only if the dividend amount exceeds 5000 during the FY
Section 194: Dividend on shares paid by company exceeding Rs 5000 will be subject to TDS @ 10%
Section 194-O: Any payment made by e-commerce operator to the participant, the operator will have to deduct 1% TDS only if the annual amount paid or credited exceeds Rs 5 lakh.
Section 206AA: in relation to 194O has been amended to 5% instead of 20% in case of not furnishing the PAN.
Change in residential status: (Section 6)
An individual, being a citizen of India, shall be deemed to be resident in India in any previous year, if he is not liable to tax in any other country
An individual being a citizen of India, or a person of Indian origin who, being outside India, comes on a visit to India in any previous year and is in India for 120 days or more, shall be resident in India
A person is said to be “not ordinarily resident” in India in any previous year, if such person is
an individual who has been a non-resident in India in seven out of the ten previous years preceding that year;
or
a Hindu undivided family whose manager has been a non-resident in India in seven out of the ten previous years preceding that year.
Section 234G (insertion of new section) relating to payment of fee of Rs 200 per day for default in furnishing statement or certificate under section 35 by research association, university, college, company or any other institution.
Section 43CA, if value adopted for the purpose of stamp duty does not exceed 110% of the actual consideration received, then consideration so received shall be deemed to be the full value of the consideration for computing profits and gains on transfer of such asset other than capital assets. Before the amendment it was 105% instead of 110%.
Section 50C, in case of transfer of capital asset being land or building or both, if value adopted for the purpose of stamp duty does not exceed 110% of the actual consideration received, then consideration so received shall be deemed to be the full value of consideration for computing capital gains on transfer of such capital assets.Before the amendment it was 105% instead of 110%.

09/08/2018

Return filing has its benefits; one of which is that it allows you to paint a complete financial picture of the year that was and make informed decisions for the year that is and make smarter choices for the years to come.

11/09/2017

TDS @ 2% is required to be deducted on payment made to the supplier of taxable goods or services of both where the value of such supply under a contract exceeds Rs. 2.5 Lakhs. Thus, the individual …

31/07/2017

As the name states, an Intimation under Section 143(1) is only an Intimation and not a Scrutiny/ Assessment Order. Intimation under Section 143(1) is an auto-generated letter by the computers of th…

07/07/2017

For an individual tax payer, filing tax return can be a complicated process with all the detailed reporting requirements. Here are a few important details that need to be provided in the ITR.

01/07/2017

GST UPDATE

1. Mandatory Registration:

a) In case, you are supplying taxable Goods or Services or both having aggregate turnover exceeding Rs 20 lacs in a financial year, you need to get compulsory registration under GST.

b) However, you may voluntarily get registered under GST even if your turnover doesn't exceed the limit mentioned above.

c) In case, you supply goods or service or both outside the state, you are operating in, GST registration is mandatory irrespective of the threshold limit.

d) Electronic Commerce Operator need to get registered under GST irrespective of the threshold limit.

2. Composition Scheme Registration

a) In case dealer's aggregate turnover in preceding financial year does not exceeds Rs 75 lacs , he may opt for registration under Composition Scheme.

b) Dealer need to pay tax at a rate not more than 1% for manufacturer, 2.5% for restaurant sector and 0.5% for other suppliers of turnover.

c) Service providers except restaurants services are not eligible for Composition Scheme.

d) Dealers making interstate sale are not eligible for Composition Scheme.

e) Dealers under Composition Scheme can neither charge GST from customers nor can avail input credit of GST paid.

3. Returns.

a) Normal Dealer need to file approx 3 returns per month.

b) Composition Dealer need to file 1 return per quarter.

4. Reverse Charge

In case a GST Registered Dealer purchases any goods or avails any services, from unregistered dealer for aggregate amount of Rs 5,000/- in a day or more, the registered dealer shall deposit GST on reverse charge basis on such goods or services.

There are some other goods and services which are notified by the Govt on which reverse charge tax is to be paid.

5. Tax invoice

a) Every registered dealer under GST, need to issue Tax invoice to the recipient of goods/services.

b) HSN Code is required to be compulsorily mentioned on the invoice based on the annual turnover of dealer in previous financial year:

- If turnover is upto Rs 1.5 cr: NO need to mention HSN Code
- If turnover exceeds Rs 1.5 cr upto Rs 5 cr: 2 digits of HSN Code
- If turnover exceds Rs 5 cr: 4 digits of HSN code

c) Some important points to be compulsorily mentioned on invoice:
- Name, address and GSTIN of Supplier
- Consecutive Serial Number unique for every financial year
- Name, address and GSTIN of recipient if registered.
- Name, address of Recipient if unregistered, in case value of supply exceed Rs 50,000/-
- Rate of Tax and amount of tax charged
- Place of supply

d) Invoice to be issued in Triplicate for Goods and in Duplicate for Services.

01/07/2017

Income tax department has said PAN that are not linked to Aadhaar by July 1 will not be cancelled, stepping in to calm the panic caused by a notification issued on wednesday. CBDT

29/06/2017

05/04/2017

01/04/2017

Now, mentioning Aadhar number is mandatory for filling income tax return. You have to mention the 12-digit Aadhaar number or the 28-digit Aadhaar enrolment number while filing the income tax return.

28/03/2017

As the clock nears the end of the current financial year, closing on March 31, one should complete financial obligations and make the necessary investments to get the benefit of additional tax savings. Here is a to-do list to be completed before March 31.