Need more direct and indirect tax reforms: Tarun Bajaj

• Nov 28, 2022
  
  

  With regard to direct taxes, there is a need to "fix the capital gains on all fronts. Second is the personal income tax and the third is to rewrite the code itself to simplify it," Bajaj told ET in an interview. "If you do that, litigation will reduce," he said, laying down the agenda for reform. He said the goods and services tax (GST) needs to be rationalised and there is a case for making the exemption-less personal income tax regime better than the old one. In the case of GST, the number of slabs needs to be reduced and another look taken at exemptions. "We are reaching a stage in our economy where we need to give complete stability to the tax structures on both sides," he said. Bajaj said increased compliance is providing a boost to revenue and the scheme to allow updated returns has been successful. "We have got about 4.5 lakh updated returns and some corporates have also filed updated returns," Bajaj said.

Income Tax

Rationalisation in long-term capital gains tax structure on the anvil

• Nov 25, 2022

  The finance ministry is looking at rationalising long-term capital gains tax structure by bringing parity between similar asset classes and revising the base year for computing indexation benefit to make it more relevant, an official said. Currently, shares held for more than one year attract a 10 per cent tax on long-term capital gains. Gains arising from sale of immovable property and unlisted shares held for more than 2 years and debt instruments and jewellery held for over 3 years attract 20 per cent long term capital gains tax.
  

  The revenue department is now looking at rationalising the tax rates as well as holding period for calculating long-term capital gains and an announcement is likely in the 2023-24 Budget to be presented in Parliament on February 1.

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Income Tax

GST Annual Return: CBIC amends GSTR-9 to Allow IRC Claims and Amendment of Invoices till 30th Nov

30 Nov 2022

The Central Board of Indirect Taxes and Customs (CBIC) has issued a notification to allow Input Tax Credit (ITC) claims and amendment of invoices till 30th November 2022. From last week, the GST portal has started allowing the amendment related to FY 2021-22 in October 2022 return period. This in line with the recent amendment in the GST Law wherein amendment can be done up to 30th Nov. of the next FY.

A notification issued on Tuesday stated that “In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), in FORM GSTR-9, under the heading Instructions, in paragraph 7, – (A) for the figures, letters and words “between April, 2022 to September, 2022”, the figures, letters and words “of April, 2022 to October, 2022 filed upto 30th November, 2022” shall be substituted; (B) in the Table, in second column, – (I) against serial numbers 10 & 11, for the figures and words “April, 2022 to September, 2022”, the figures, letters and words “April, 2022 to October, 2022 filed upto 30th November, 2022” shall be substituted; (II) against serial number 12, for the figures and words “April 2022 to September 2022”, the figures, letters and words “April, 2022 to October, 2022 upto 30th November, 2022” shall be substituted; (III) against serial number 13, for the figures and words “April 2022 to September 2022”, the figures, letters and words “April, 2022 to October, 2022 upto 30th November, 2022” shall be substituted.”

The taxpayer can amend the details of taxable outward supplies made to the registered person that is already reported in table 4A, 4B, 6B, 6C – B2B Invoices. The taxpayer shall provide the financial year and invoice number and click on Amend Record to search for the invoice. As extended by the Government, from time to time, 30th November is the deadline for making GSTR-1 amendments and claiming pending input tax credit (ITC) for FY 2021-22. However, the actual due date is dependent on November’s GSTR-1/GSTR-3B filing deadlines (i.e. pertaining to October’s return period). If a taxpayer misses the relevant deadlines, the GSTR-1/3B cannot be revised. Pending ITC for FY 2021-22, if any, will be forfeited.

GST

Income Tax department issues revised instruction on action against officers for high-pitched assessments

Jun 17, 2022

The income tax department on Thursday said it has issued revised instruction, which provides for initiation of suitable administrative action against the officer concerned, in cases of high-pitched assessments. In 2015, the Central Board of Direct Taxes (CBDT) had provided for the constitution of ‘local committees to deal with taxpayer grievances from high-pitched scrutiny assessment’ in each principal commissionerate region. Considering the implementation of faceless assessment regime, the CBDT has now issued a revised instruction regarding constitution and functioning of these committees.

Income Tax

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