ITR-V submission: Time limit for verifying ITR reduced to 30 days

• Aug 01, 2022

• The Central Board of Direct Taxes (CBDT) has reduced the time limit for verification of income tax return (ITR) to 30 days from 120 days earlier. The reduced time limit of 30 days applies to ITRs filed on and after August 1, 2022. The CBDT announced this via a notification issued on July 29, 2022. This notification will come into effect from August 1, 2022. For ITRs filed up till and including July 31, 2022 the earlier time limit of 120 days from date of filing of ITR continues, as per the CBDT notification.

Income Tax

TDS on large loan waivers likely to go

Aug 05, 2022

The faceless authority has suggested a host of changes in the assessment process following conflicts and practical difficulties raised by taxpayers since the new regime was introduced. On August 3,2022 the National Faceless Assessment Centre issued a set of standard operating procedures (SOPs) to address several anomalies in the regime. The faceless centre, constituted by the Central Board of Direct Taxes, is the nodal authority and works as an interface for the faceless regime. Under the new SOP, an assessing officer will propose computation of income and loss after considering all aspects — differences and variations in the tax addition made by the department and responses submitted by the assesses — before passing the final order in the case.

Tax Deduction at Source

FPIs face glitches while filing I-T returns

• Aug 05, 2022
  
  

• Despite a much-improved experience, foreign portfolio investors (FPIs) continued to grapple with a host of issues while filing income tax returns this year.FPIs are required to maintain Form 10F and provide the same along with other documents when asked by the income tax officer to claim tax treaty benefits. This year, however, the CBDT issued a notification in mid-July, making it mandatory to file Form 10F electronically for tax payers claiming tax treaty benefits. A digital signature certificate (DSC) is required for furnishing Form 10F electronically, but non-corporate FPIs are typically not required to obtain a DSC.

Income Tax

Tax bill worries: No work calls or mails on Indian vacation, MNCs tell executives

• Aug 08, 2022
  
  

• A partner with a London-based Magic Circle law firm was visiting Mumbai to meet family but during his vacation he had to connect with an Indian client who's looking to raise some money from the overseas bond market. He and the client, along with another senior partner from an Indian law firm, held the meeting in Singapore. All three then flew back to India.
  As Covid-related travel curbs are lifted, many multinationals, as part of documented policy, are telling overseas employees vacationing in India to avoid taking office laptops or doing any sort of work while they are in the country. The fear is that if the employees respond to an email or attend a video conference, it could potentially end up in a large tax bill or lead to other regulatory issues.
  "Some foreign law firms that do not have an office or permanent establishment (PE) in India have a policy that their partners and employees while visiting India should not carry office laptops or should not carry out work like con-calls or respond to official email," said Sujjain Talwar, cofounder and partner at ELP. "The fear is that doing so could result in even the global revenues getting taxed in the country."

International Tax

7th Pay Commission: Central Government Employees with arrears of salary can claim tax relief – Here’s how

• Aug 08, 2022
  
  

• 7th Pay Commission – Central Government Employee Salary News: Should a Central Government Employee having arrears of salary as per the recommendation of the 7th Pay Commission file any form to claim relief under Section 89 of the Income Tax? According to the tax rules, it is mandatory for a government employee to file form 10E online on the Income Tax e-filing website to claim relief under Section 80. Taxpayers who claim relief under Section 89 without filing Form 10E can get a notice from Income Tax Department stating that “The relief under Section 89 has not been allowed in your case, as the onlie form 10E has not been filed”. Therefore, you are required to file Form 10E online before filing your Income-tax return.

Income Tax

New Income Tax exemption rules for expenses on Covid-19 treatment: Check conditions and documents required

• Aug 08, 2022

• Income Tax exemption for Covid-19 treatment: The Central Board of Direct Taxes (CBDT) recently notified new conditions and a form for claiming exemption against expenses on Covid-19 treatment.As per the notification dated 5 August 2022, you will have to submit certain documents to your employer and a form to the income tax department to claim tax exemption on money received from an employer or relatives for Covid-19 treatment.

Income Tax

Banks approach CBDT for clarity on new TDS norm

• Aug 09, 2022

• Banks have approached the Central Board of Direct Taxes (CBDT) for clarity on the scope of Section 194R of the Income Tax Act, as they fear the newly introduced provision will force them to deduct a 10% tax at source on incentives extended to large business customers through credit cards, banking sources told FE.According to Section 194R, introduced in the Budget for FY23, any person providing a resident a benefit or perquisite arising from a business or the exercise of a profession by such resident, will ensure that tax has been deducted at the rate of 10% of the value of the benefit or perquisite. The rules, tied to some riders, came into force on July 1.

Tax Deduction at Source

Analytics & Technology Are Transforming India’s Taxman

Aug 10, 2022

Sweeping technology-driven changes in tax administration for companies and individuals is unfolding, with services like never before. Voluntary tax compliance has been the buzzword. Use of technology and skilling of the tax professional is the quiet change. System and data-driven tax regime is unfolding the new way of undertaking tax compliance in India.

The four broad themes have been the pillars of silent change that has been brewing with the tax administration. A very scalable platform is now ready and allows for several new services being launched over an extended period. To begin with, a payment system that connects the platform to banks and financial institutions could make transactions easier is already working. Mobile-driven responses to AIS, mobile apps for convenience, use of e-filing and other new services are in the works.

General