Section 206AB and Section 206CCA – Special provision for TDS/TCS for non-filers of income-tax return

Post by Admin Admin

These sections are special provision for deduction/collection of tax at source at a higher rate for certain non-filers (specified person) of Income Tax Return.

For FY 2021-22, specified person shall mean those persons who have not filed their Income Tax Return for both the FY 2018-19 & FY 2019-20 and whose total tax deducted/collected during each of FY 2018-19 & FY 2019-20 were INR 50,000/- or more.

Section 206AB deals with deduction of tax (TDS) at a higher rate whereas Section 206CCA deals with the collection of tax (TCS) at a higher rate.

Sub-section (1) of Section 206AB/206CCA states that, where tax is required to be deducted/collected at source on any sum or income or amount paid/received or payable or credited by any person to/from the specified person, then Tax shall be deducted/collected at higher of the following rates:

Section 206AB

Section 206CCA

(i) At twice the rates specified in the relevant provisions of the act

(i) At twice the rates specified in the relevant provisions of the act

(ii) At twice the rate or rates in force

(ii) At the rate of 5%

(iii) At the rate of 5%


 

 

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Insertion of section 194Q in the Income Tax Act

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Brief Description

Any person, being a buyer who is responsible for paying any sum to any seller (being a resident) for purchase of any goods (including capital goods), where the value or aggregate of such values, exceeds ₹50 lakhs in any P.Y., shall deduct TDS @ 0.1% (5% in case PAN is not furnished) on the purchase value exceeding ₹50 lakhs.

Applicability

This section is applicable only when purchases are made from a resident seller, hence, no TDS shall be deducted in case of imports.

Exceptions:

The provisions of this section shall not apply to transactions where:

  • tax is deductible under any other section
  • tax is collectible under section 206C other than a transaction to which sub-section (1H) of section 206C applies

Rate of TDS: 0.1% (5% in case PAN is not furnished) of the purchase value exceeding ₹50 lakhs.

Time of deduction:

Earlier of the following:

  • At the time of credit of such sum to the account (even if Suspense A/c) of the seller
  • At the time of payment by any mode
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Late Fee For Filing Income Tax Returns

Post by Admin Admin

As per the amendment to Section 234F of The Finance Act 2021, the late-filing fee of return u/s 139(1) shall be Rs. 5,000. However, where the total income of a person does not exceed Rs. 5 Lacs, the fee payable shall not exceed Rs. 1,000.

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Last Date For Filing Of Belated Or Revised Returns Of Income Reduced By Three Months

Post by Admin Admin

Currently, belated and revised ITRs can be filed voluntarily after the normal deadline, up to March 31 of the assessment year.

From FY 2020-21 onwards, belated return or revised return are to be filed three months before the end of the relevant assessment year (up to December 31) or before the completion of the assessment, whichever is earlier.

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Disallowance of Employees’ Contribution To Labour Welfare Funds (ESI/PF Etc.) If Not Deposited By Due Date

Post by Admin Admin

With effect from 1st April,2021 any amount received as an employee’s contribution towards provident fund, or ESI funds, shallbe treated as income of the Employer if the same is not deposited on or before the due date as provided under the PF and ESI Acts

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TDS/TCS On Non Filer of income tax return At Higher Rates

Post by Admin Admin

In case of non-filing of income tax return for last two years and where TDS /TCS is Rs. 50,000 or more in each of these two previous years, rate of TDS/ TCS shall be higher of:

– Twice the specified rate

or

– 5%

Salary income, payment to NR, income from lottery shall be excluded from this section.

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TDS On Purchase Of Goods Section 194Q

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From 1st July 2021, TDS at 0.1% is applicable on a purchase transaction exceeding Rs.50 Lacs in a year. The responsibility of deduction shall lie only on the buyer whose turnover exceeds Rs. 10 Crore

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TDS and TCS Rates- No Further COVID Relief.

Post by Admin Admin

TDS and TCS Rates had been reduced by 25% during FY 2020-21 due to COVID-19. However, with effect from 1st April 2021, original TDS and TCS rates will be applicable for FY 2021-22

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Major Amendments to the finance act 2021

Post by Admin Admin

 Finance Minister, Nirmala Sitharaman, has introduced ‘Notice of Amendments’ to the Finance Bill, 2021 in the Lok Sabha on 22rd March 2021. The finance bill 2021 has been passed by the Lok Sabha with all the changes on 23rd March 2021. The government has proposed 127 changes to the original Finance Bill, 2021 which was introduced in the Lok Sabha on February 01, 2021.

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Certain Forms for Income Tax Deduction scrapped w.e.f. 1st April 2021

Post by Admin Admin

The Central Board of Direct Taxes (CBDT) has notified that Form 10G, 56, 3CF-I, 3CF-II and 3CF-III ceased to be effective on or after the 1 April, 2021.

Form 10G

Application for grant of approval to fund or institution under clause (vi) of sub-section (5) of section 80G of the Income-tax Act, 1961.

        Earlier 10G form for 80G registration has been withdrawn, the same can be applied now with Form 10A or 10AB as the case may be.

Form 56

        The application for grant of exemption or continuance under section 10(23C)(iv) and (v) for the year has been omitted by the CBDT.

Form 3CF-I, 3CF-II and 3CF-III

Form No. 3CF-I/II and Form No. 3CF-III has been substituted by ‘Form No. 3CF’ under Rules 5C , 5D, 5E and 5F respectively of the Income-Tax Rules, 1962 and manner of furnishing the same has been introduced with regard to deductions of expenditure on scientific research.

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For AY 2021-22, the ITR1 to 4 can be filled using single JSON Utility. Import of Prefill file is mandatory in utility.

Post by Admin Admin

For AY 2021-22, the ITR1 to 4 can be filled using single JSON Utility. Import of Prefill file is mandatory in utility.

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Eform INC-6 revised as per Companies (Incorporation) Second Amendment Rules, 2021 has been made available for filing

Post by Admin Admin

Eform INC-6 revised as per Companies (Incorporation) Second Amendment Rules, 2021 has been made available for filing

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Form CSR-1 has been made available on MCA’s website for filing as eForm

Post by Admin Admin

Form CSR-1 has been made available on MCA’s website for filing as eForm

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In exercise of the powers conferred by section 285BA read with section 295 of the Incometax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend

Post by Admin Admin

In exercise of the powers conferred by section 285BA read with section 295 of the Incometax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend Income-tax Rules, 1962, name

Notification No 16/2021 (incometaxindia.gov.in)

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In exercise of the powers conferred by section 195 read with section 295 of the Income- tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes, hereby, makes the following rules further to amen

Post by Admin Admin

In exercise of the powers conferred by section 195 read with section 295 of the Income- tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes, hereby, makes the following rules further to amend the Income-tax Rules, 1962

notification_18_2021.pdf (incometaxindia.gov.in)

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Amount of remuneration prescribed under section 9A(3)(m) of the Income-tax Act, 1961

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Amount of remuneration prescribed under section 9A(3)(m) of the Income-tax Act, 1961

Circular No. 1/2021 (incometaxindia.gov.in)

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Updated provisions regarding Residential status of certain individuals under Income-tax Act, 1961.

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Updated provisions regarding Residential status of certain individuals under Income-tax Act, 1961.

residency-circular-02-of-2021

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Amended provisions of the Companies Act & Nidhi rules requires that Nidhi companies have to apply to CG for updation/declaration of their status as Nidhi Company in e-Form NDH_4

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Amended provisions of the Companies Act & Nidhi rules requires that Nidhi companies have to apply to CG for updation/declaration of their status as Nidhi Company in e-Form NDH_4

Sensitizing general Public about Nidhi Companies.

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Scheme for condonation of Delay for companies restored on the register of companies between 01-12-20 and 31-12-2020,under section 252 of the companies Act 2013.

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Scheme for condonation of Delay for companies restored on the register of companies between 01-12-20 and 31-12-2020,under section 252 of the companies Act 2013.

Scheme for condonation of delay for companies restored during Dec 2020 u/s 252 of the CA 2013

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http://sbhandari.in/admin/index.php

Post by Admin Admin

Rules further to amend the Companies (Management and Administration) Rules, 2014

CompaniesMgmtAdminAmndtRules_11032021.pdf (mca.gov.in)

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Reporting and Accounting of Central Government transactions of March 2021

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Reporting and Accounting of Central Government transactions of March 2021

https://rbidocs.rbi.org.in/rdocs/notification/PDFs/108RESIDUALA1966F0198FE40EC95F31C3DBB2B6D25.PDF

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Extension of Cheque Truncation System (CTS) across all bank branches in the country

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.Extension of Cheque Truncation System (CTS) across all bank branches in the country

https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOT107B278DEAA1D394D6C9CD0C33ACC65A220.PDF

 

 

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Application for grant of certificate for determination of appropriate proportion of sum (other than Salary), payable to non-resident, chargeable in case of the recipients.

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 Application for grant of certificate for determination of appropriate proportion of sum (other than Salary), payable to non-resident, chargeable in case of the recipients.

https://www.incometaxindia.gov.in/communications/notification/notification_18_2021.pdf

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The BANNING OF UNREGULATED DEPOSIT SCHEMES ORDINANCE, 2019 has been issued by the President of India vide Notification dt. 21.02.2019.

The BANNING OF UNREGULATED DEPOSIT SCHEMES ORDINANCE, 2019 has been issued by the President of India vide Notification dt. 21.02.2019. ....

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Capital tax benefit u/s 54 has increased from investment in one residential house to two residential houses. Capital gains under section 54 of the Income Tax Act will be increased from investment in o

Capital tax benefit u/s 54 has increased from investment in one residential house to two residential houses. Capital gains under section 54 of the Income Tax Act will be increased from investment in one residential house to two residential houses for a tax payer having capital gains up to Rs 2 crore....

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Ceiling limit of TDS u/s 194I has been increased from Rs 180000 to Rs 240000

Ceiling limit of TDS u/s 194I has been increased from Rs 180000 to Rs 240000....

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Ceiling limit of TDS u/s 194A has been increased from Rs 10000 to Rs 40000

Ceiling limit of TDS u/s 194A has been increased from Rs 10000 to Rs 40000....

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No tax on notional rent of second self-occupied House i.e. now upto two self-occupied house properties can be considered for exemption while calculating the income from house property.

No tax on notional rent of second self-occupied House i.e. now upto two self-occupied house properties can be considered for exemption while calculating the income from house property.....

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Standard deduction u/s 16 has been increased from Rs.40000 to Rs. 50000.

Standard deduction u/s 16 has been increased from Rs.40000 to Rs. 50000.....

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Rebate u/s 87A has been increased to Rs. 12500 on a total income of Rs. 500000

Rebate u/s 87A has been increased to Rs. 12500 on a total income of Rs. 500000....

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