Income tax department moves to resolve tax refund issues quickly

Dec 05, 2022                                                                                                                                                                                                                                                                              The income-tax department has issued instructions to ensure taxpayer grievances about adjustment of tax dues against pending refunds are resolved quickly to check avoidable litigation. The tax department has told its top officers, including all principal chief commissioners, that it observed instances of incorrect adjustment of outstanding tax demands against tax refunds that are due to assessees. That, the department said, is due to incorrect classification of tax demands as ‘correct and collectable’ or not receiving feedback from tax officers on grievances filed by assessees.
                                                                                                                           

Income Tax

Income Tax department reduces time for taxmen to decide on refund adjustment

• Dec 05, 2022 

  The income tax department has reduced the time for tax officers to decide on adjustment of refunds against outstanding tax dues to 21 days, a move which will help avoid litigation.

  The time limit of 30 days made available to the assessing officers stands reduced to 21 days, the Directorate of Income Tax (Systems) said.

  “If the assessee either does not agree or partially agrees for adjustment, the matter shall be referred by CPC immediately to the assessing officer, who shall, within 21 days from the date of such reference, shall provide feedback to CPC as to whether the adjustment should be made or not,” it added AMRG & Associates Senior Partner Rajat Mohan said in many cases involving the adjustment of refunds, the Centralised Processing Centre (CPC) noticed that wrong categorisation of demand or lack of feedback from the AO (Assessing Officer) on the assessee’s response led to incorrect adjustment of refunds, resulting in needless complaints and litigations. Another concern was that the AO did not promptly respond to the assessees’ complaints.

Income Tax

The Key Principles of GAAP or Basic Accounting Principles

1ST DECEMBER,2022

There are general concepts that lay out the main mission of GAAP.
1. Principle of Regularity:- The accountant has adhered to GAAP rules and regulations as a standard.
2. Principle of Consistency:- Accountants commit to applying the same standards throughout the reporting process, from one period to the next, to ensure financial comparability between periods. Accountants are expected to fully disclose and explain the reasons behind any changed or updated standards in the footnotes to the financial statements.
3. Principle of Sincerity:- The accountant strives to provide an accurate and impartial depiction of a company’s financial situation.
4. Principle of Permanence of Methods:- The procedures used in financial reporting should be consistent, allowing a comparison of the company's financial information.
5. Principle of Non-Compensation:- Both negatives and positives should be reported with full transparency and without the expectation of debt compensation.
6. Principle of Prudence:- This refers to emphasizing fact-based financial data representation that is not clouded by speculation.
7. Principle of Continuity:- While valuing assets, it should be assumed the business will continue to operate.
8. Principle of Periodicity:- Entries should be distributed across the appropriate periods of time. For example, revenue should be reported in its relevant accounting period.
9. Principle of Materiality:- Accountants must strive to fully disclose all financial data and accounting information in financial reports.
10. Principle of Utmost Good Faith:- Derived from the Latin phrase uberrimae fidei used within the insurance industry. It presupposes that parties remain honest in all transactions.
Note: At our firm, we are committed to provide the best services without compromising the quality of work. 

Accounting

Govt working on decriminalising certain offences under GST, lower compounding charges

• Sep 29, 2022
• 
  

• The government is working on decriminalisation of certain offences under GST by raising the threshold limit for launching prosecution and also lowering charges for compounding of offence, an official said. Currently, the law provides for launching prosecution against offenders in cases where the amount of Goods and Services Tax (GST) evasion or misuse of input tax credit is more than Rs 5 crore.

GST

Businesses can now claim input tax credit for 2021-22

• Sep 30, 2022
  Businesses can now claim input tax credits for 2021-22 and can rectify any errors in respect of details of outward supplies up to November 30.The government has notified an amendment to the central goods and services tax Act to provide for additional time for claiming input tax credit, issuance of credit notes, rectification of errors and extending the last date of September 30. The due date of issuance of credit notes and declaration in the returns has also been extended to November 30.

GST

Last date for FY22 GST ITC extended

• Sep 30, 202
  The Central Board of Indirect Taxes and Customs (CBIC) has extended the last date for taking input tax credit (ITC) for FY22 from October 20 to November 30. The due date for issuance of credit notes and declaration in the returns for FY22 has also been extended to November 30.

GST

Budget to reset tax laws to decriminalise sections in I-T, GST: Finance Ministry

• Sep 30, 2022

• No compounding under GST yet due to steep penalties, may slash them to curb tax disputes. The Union Budget 2023-24 will include steps to decriminalise taxation laws, remove provisions in the Income Tax, GST and Customs laws that are similar to sections that can be invoked under the Indian Penal Code (IPC), and reduce ‘prohibitive’ compounding charges under GST, a senior Finance Ministry official said. The compounding provisions in GST, which entail penalties from 50% to 150% of the tax amount involved, make it “impossible for anybody to pay”, said Vivek Aggarwal, Additional Secretary in the Department of Revenue. As a result, “there has been zero compounding in India till now for all cases filed under the GST Act,” he added.

GST

Sept GST receipts at close to Rs 1.48 trn

• Oct 03, 2022
  Gross goods and services tax (GST) collections came in at Rs 1,47,686 crore in September (August transactions), reflecting a stabilisation of the monthly revenue from the consumption tax at above Rs 1.45 trillion.The mop-up has remained above the Rs 1.4-trillion mark for the seventh month in a row. Average monthly collections in April-September this fiscal were close to Rs 1.49 trillion, compared with Rs 1.23 trillion in FY22. On September 14, revenue secretary Tarun Bajaj had asked revenue officers to try and ensure GST collections of around Rs 1.5 trillion from October onwards.

GST