10% TDS on benefits and shares given to directors

• Jun 18, 2022
  
  

• Allotment of shares to directors, providing cars to them, and a sponsored business trip or conference by a company will attract 10% tax deducted at source (TDS) from July 1. The Central Board of Direct Taxes (CBDT) on Thursday issued a detailed guidelines on deduction of tax at source under Section 194R of the Income Tax Act. It requires deduction of TDS at the rate of 10% by any person providing any benefit or perquisite, exceeding ?20,000 in a year to a resident. The provision was introduced in the last budget.

Income Tax

Net direct tax mop-up rises 45% to over Rs 3.39 lakh cr till mid-June

• Jun 18, 2022
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  Reflecting an uptick in economy, net direct tax collections between April and mid-June jumped 45 per cent to over Rs 3.39 lakh crore, the Income Tax department said. The improved collections are mainly due to a 47 per cent growth in TDS mop-up and a 33 per cent rise in advance tax realisation for April-June quarter. The net direct tax collection of over Rs 3.39 lakh crore included Corporation Tax (CIT) of over Rs 1.70 lakh crore and Personal Income Tax (PIT), including Security Transaction Tax (STT), of more than Rs 1.67 lakh crore.

Income Tax

Sloppy taxmen on high profile cases to face action

• Jun 21, 2022
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  Looking to address the concerns of taxpayers about high-pitched assessments under the faceless scheme, the revenue department has asked the Central Board of Direct Taxes (CBDT) to initiate strict action against officials for slapping notices on taxpayers without following procedures, or cross-checking facts. The department has also asked CBDT to ensure that all local committees that have been formed to look into complaints by taxpayers provide a quarterly report on actions taken, people aware of the matter told ET. The move comes following observations by various courts that addition of income and imposition of penalty for underreporting of income were being done without following procedure.

Income Tax

Income Tax dept notifies tax filing disclosure norms for TDS on crypto assets from July 1. Check details

• Jun 23, 2022
  
  

• The Income Tax Department has notified the disclosure norms for Tax Deducted at Source (TDS) for virtual digital assets (VDAs). From July 1, a TDS of 1% will be levied on any transactions exceeding Rs 10,000 in a year on crypto assets under the newly introduced Section 194S of the I-T Act.
  IT Department’s Central Board of Direct Taxes (CBDT) on June 21 notified of the changes in rules pertaining to filings of TDS returns in Form 26QE and Form 16E.
  CBDT clarified that TDS collected under Section 194S shall be deposited within 30 days of the month in which the deduction is made. This will reflect in challah-cum-statement Form 26QE, it added.
  Nangia Andersen LLP Partner Neeraj Agarwal told PTI that to furnish Form 26QE, taxpayers would be required to mention the date of transfer of VDAs, value of consideration, mode of consideration, whether cash or kind or in exchange of another VDA etc.

Tax Deduction at Source

DTAA amendment by Australia likely to come into force from April 1

• Nov 24, 2022
  
  

• • The double tax avoidance agreement (DTAA) ratified by Australian Parliament, along with its trade deal with India, may come into force on April 1 next year, the finance ministry informed the commerce ministry. The DTAA is expected to eventually lead up to $1 billion in savings for Indian information technology (IT) companies operating in Australia, from the present-day $200 million.“The Australian government has communicated to us that the DTAA will likely come into effect on April 1, 2023. Our finance ministry has also agreed to it since our fiscal year begins from that date,” said a government official.

International Tax

PAN-Aadhaar linking deadline: 7 important FAQs you should know

Mar 29, 2022 

The last date to link one's PAN with Aadhaar is March 31, 2022. If both these documents are not linked by March 31, then there will be numerous consequences faced by an individual. For instance, if the PAN is not linked with Aadhaar by March 31, then firstly your PAN will become inoperative. Once the PAN becomes inoperative, then you won't be able to conduct various financial transactions such as opening of bank account, investing in shares, mutual funds etc. or wherever quoting of PAN is mandatory such as lower deduction of tax from salary, interest income etc.

General

Non-linking of PAN with Aadhaar by March 31 to attract penalty of Rs 500-1,000

• Mar 31, 2022
• The Income Tax department said that taxpayers who had not yet linked their Aadhaar cards with their Permanent Account Number (PAN) and did not do so by March 31 would be required to pay a penalty between Rs 500 and Rs 1,000. The Central Board of Direct Taxes said a late fee of Rs 500 will be levied in cases where the Aadhar is linked within the next three months or by June 30, 2022. A fine of Rs 1,000 will be levied thereafter.
  

Income Tax

New income tax rule changes from 1 April 2022. Details here

• Mar 31, 2022
  
  

• There are many changes in the income tax rules effective from the next financial year. Income tax on crypto assets, filing of updated returns, new tax rules on EPF interest, and tax relief on Covid-19 treatment are some of the major changes effective from 1 April 2022. The crypto asset tax regime in India will gradually roll out in the financial year starting April 1. Provisions on the 30% tax will be effective at the start of the fiscal year while those related to the 1% TDS will come into effect from July 1, 2022. The 2022-23 Budget has brought in clarity concerning the levy of income tax on crypto assets. The threshold limit for TDS would be ?50,000 a year for specified persons, which includes individuals/HUFs who are required to get their accounts audited under the I-T Act.

Income Tax