Thursday, December 1, 2022

E Pay Tax Without Login in Easy Steps

 The CBDT has changed the procedure for e payment of Income Tax from 1st Nov, 2022

Here are given easy steps to make e payment of taxes without Log in on the Income Tax portal where all your bank accounts, Aadhar and income details are there.

So e payment of taxes without Login being safer than log in is made easy here in steps:

-       Go to the e-Filing portal homepage and click e-Pay Tax or click on https://eportal.incometax.gov.in/iec/foservices/#/e-pay-tax-prelogin/user-details

-       Enter PAN and Confirm PAN in textbox and enter mobile number

-       Enter the 6-digit OTP received on the mobile number

-       After OTP verification, a success message with PAN and Name will be displayed

-       After selecting the applicable Tax Payment like 100 for Advance Tax, 300 for self Asst Tax and 400 for Demand of Earlier Years click Continue.

-       Select the payment mode though which payment is proposed to be made i.e Net Banking, Debit/ Credit Card, Cheque at Bank Counter or through RTGS/ NEFT

 

-       Once a payment mode is chosen for a Challan Form and Challan Reference Number (CRN) is generated for it, the payment mode cannot be changed later during payment. 

-       For payment through Net Banking (of authorized banks)

·         Select the Bank Name from the options. (If your bank name is not displayed then select it from the dropdown menu of Other Bank) & click Continue.

·         On the Preview and Make Payment page, verify the payment details and tax break up details and click Pay Now.

    Read and accept the Terms and Conditions and click Submit to Bank. (the website of the selected Bank        where you can log in and make the payment.)

Saturday, April 23, 2022

Strict Penalties on Cash Receipts on sale of Goods & Services - Under Section 269ST

 

PENALTY  SECTION 271DA ON CASH RECEIPT –SEC. 269ST  OF INCOME TAX ACT

Sec 269ST provides- No person should receive  Rs. 2 lacs or more in cash ( i.e over Rs. 199000) (a) on a day in aggregate from the same person (b) in respect of a single transaction (c) in respect of transactions related to same event or occasion from a person.

Penalty : Sec, 271DA . if a Person receives any sum in contravention of the Provision of Section 269ST, he shall be Liable to  Penalty = Amount of such  receipt.

Who will pay Penalty ?: Any such receiver getting cash.

Examples:

S.No.

Situation

 Receiver contravening Sec 269T (Yes/No)

Penalty on receiver(s) under Sec 271DA (Rs)- Reason

A

 

  1 a

For SALE OF GOODS OR SERVICES:  Jeweller sells goods worth Rs. 500000 to B as under against :

a)       Bill No. 1 Rs. 150000 on 01.04.22

b)      Bill No. 3 Rs. 200000 on 05.4.22

c)       Bill No. 6 Rs. 50000 on 06.4.22

d)      Bill No. 8 Rs. 100000 on 10.4.22 but

Jeweeller receives 500000 in cash against all 4 bills at different times on a single day ( 11.04.22).

Yes

500000

1.    b

If in above situation S receives cash on those 4 days of the billings .

Yes on 05.4.22

Rs. 2 lac 

( exceeds Rs. 199999.99 on 05.04.22)

2.     

S sells goods worth Rs. 250000 against bill No. 01 and also receives cash  Rs. 250000

Yes

250000

3.     

S sells goods worth Rs. 500000 Billed on 4.3.21 ( or for same Vehicle sold )  but received in cash as under:

a)    On Day 1 – 150000 on 10.5.22

b)    On Day 2 – 250000 on 12.5.22

c)    On Day 3 – 100000 on 14.5.22

Yes

 

Rs. 5 lac (because same bill or same car)

4.     

S engages B for carrying following Party function:

a)    Decoration and lights– 150000

b)    Food catering – 250000

c)    Tent – 250000

d)    Music – 100000

Pays entire amount in cash at different dates each instalment being lower than 2 lakhs

Yes

 

Rs.750000 (since the transactions relate to one event )

5.     

S receives cash as under against :

a)    Bill No. 001 from A – 100000

b)    Bill No. 002 From B – 150000

c)    Bill No. 003 From C – 100000

Entire sum received on the same day.

No

.

Nil ( because not from same customer )

6.          

S sells goods worth Rs. 300000 to C Ltd and collect cash under against single Purchase order dated 4.4.21 but on different dates  or for same car sold :

a)    On Day 1 on Bill No. 1- 150000

b)    On  Day 2 on Bill No. 2- 150000

Yes

 

RS. 300000 Receipt of single Transaction/ single purchase order/ Same Car

7.          

S sells goods worth Rs. 500000 to B-

a)    Against Bill No. 1 – 150000 on day 1

b)    Against Bill No. 2 – 100000 on day 3

c)    Against Bill No. 3 – 250000 on day 6

And collects entire on same day say day 7

Yes

 

Rs. 500000

8.          

Car Owner receives Cash Rs. 3 lac from Dealer for sale and Rs. 2 lac by cheque.

Dealer Sells car for Rs. 550000 in Cash.

Yes

Car owner Rs. 3 lac.

Dealer Rs. 550000

9.          

Of Dealer Rs. 4 lac in cash and 1.5 lac by Bank trf/ account payee cheque in above case

YES

Rs.4 lac Penalty on  Dealer

10. 

 CASH GIFT RECEIVED -A accept cash gift Rs. 250000 from his wife

Yes

Rs. 250000 Penalty on husband

11. 

TOUR ADVANCE: A gives Rs. 4 lac to B going on office tour  from Delhi to Chennai and instructed to deliver the sum to C.

Yes

 

Rs. 4 lac *2

=800000 ( Both B and C liable to pay penalty Rs 4 lac each)

 

Monday, June 28, 2021

Vendor Verification Method for Higher TDS Deduction

Cases of Deduction of TDS at Higher Rate (Current Discussion)

1. TDS deduction is to be carried out at a higher rate for non-filers of Income Tax Returns as explained by us here, as read under section 206AB of the Income Tax Act.

2. Further, as per Rule 114AAA, the PAN of a person will become inoperative if he fails to link it with Adhaar. Such invalidity of Aadhaar will mean deduction of TDS for such person in a manner that PAN has not been furnished (i.e. @ 20%) as per section 206AA of the Income Tax Act. (The due date for linking has been extended to 30th September 2021)

Checking if Payee falls under the Above Categories

1.Register on the Reporting Portal (http://report.insight.gov.in) by logging in to http://www.incometax.gov.in/ using login credentials of TAN and clicking on the link, “Reporting Portal”, which is available under “Pending Actions” Tab of the e-filing Portal.

2. After being redirected to the Reporting Portal, select Compliance Check (Tax Deductor & Collector) under Form Type.

3. Enter details of the principal officer by clicking on “Add Principal Officer” button. 

4. After submission of registration request, email notification will be shared with the Principal Officer along with ITDREIN details and login credentials.

5. After successfully logging in, link to the functionality “Compliance Check for Section 206AB & 206CCA” will appear on the home page of the Reporting Portal. Click on "PAN Search"

5. The following details will be visible about the PAN

- Financial Year: Current Financial Year
- PAN: As provided in the input.
- Name: Masked name of the Person (as per PAN).
- PAN Allotment date: Date of allotment of PAN.
- PAN-Aadhaar Link Status: The response options are "Linked", "Not Linked", "Exempt" or "Not-Applicable" (PAN belongs to non-individual person).
- Specified Person u/s 206AB & 206CCA: The response options are "Yes" (PAN is a specified person as per section 206AB/206CCA as on date) or "No" (PAN is not a specified person as per section 206AB/206CCA as on date).

6. You can also do a "Bulk Search" of up to 10,000 PAN by downloading the CSV Template and uploading the filled in file.

References:

Saturday, June 19, 2021

NO TAX ON LESS THAN RS.250000 DEPOSIT DURING DEMONITIZATION- ITAT AGRA

 

 ITAT Agra held that  Instruction No. 03/2017, dated 21-2-2017,to the Assessing Officers are statutory and binding on revenue, therefore the Assessing Officer can not tax cash deposit in bank account during Demonetization Scheme, 2016, as unexplained income , the amount less than  2.5 lakhs by and Housewife out her savings since last several years to meet family emergency needs in the case of  Smt Uma Aggarwal v ITO 1(3) Gwalior  [2021] 127 taxmann.com 735 (Agra - Trib.)

Saturday, May 29, 2021

GST Amnesty Scheme and Late Fee Waivers (COVID)

At the 43rd GST Council Meeting on 28th May, 2021, the council announced the following relief measures in the form of an Amnesty Scheme that provides relief from late fee for delayed filing of GSTR-3B.


Amnesty Scheme - Late Fee Waiver for Pending GSTR-3B

The late fee for non-furnishing of GSTR-3B from July 2017 to April 2021 has been reduced as under:

(i) Maximum of Rs 500 per return for taxpayers who had NIL GST liability

(ii) Maximum of Rs 1000 per return for those with GST liability

The reduced rates shall apply only if the returns are filed between 01-Jun-2021 to 31-Aug-2021.


Late Fee Linked to Turnover for Prospective Periods

Late fee for delayed filing of GSTR-3B and GSTR-1 will be capped for all future returns as follows.

1. NIL tax liability in GSTR-3B or NIL outward supplies in GSTR-1: Maximum Rs 500

2. Other than NIL tax liability, the late fee would be capped based on Aggregate Annual Turnover of the preceding financial year, as follows.

(a) Up to Rs 1.5 crores: Maximum of Rs 2,000
(b) Between Rs 1.5 crore to Rs 5 crore: Maximum of Rs 5,000
(c) Above Rs 5 crores: Maximum of Rs 10,000

3. GSTR-4 by Composition Taxpayers: Maximum Rs 500 per return, if tax liability is NIL in the return, and Rs 2000 if liability is other than NIL.

4. Delayed furnishing of GSTR-7 to be reduced to Rs.50/- per day; capped to a maximum of Rs 2000 per return.


Interest & Late Fee Relief for March, April & May 2021 Returns for GSTR-3B

In addition to the relief measures already provided, the following further relaxations are being provided:

1. If Aggregate Turnover up to Rs. 5 crores:

a) Interest for March & April 2021:
- First 15 days after due date: NIL interest
- Next 45 days for March and 30 days for April: 9% p.a.
- 18% p.a. interest thereafter

b) Late Fee for March & April 2021:
- NIL for 60 days after due date of March
- NIL for 45 days after due date of April

c) For May 2021:
- NIL interest for first 15 days from the due date
- 9% p.a. interest for next 15 days
- No Late Fee for up to 30 days delay in furnishing GSTR-3B for monthly taxpayers

2. Aggregate Turnover > Rs. 5 crores:

a) Interest @ 9% p.a. for first 15 days after due date for GSTR-3B for May

b) Late Fee Waiver for up to 15 days delay in filing GSTR-3B for May

3. Other Extensions

a) GSTR-1/ IFF due date for May 2021 extended by 15 days

b) GSTR-4 due date for FY 2020-21 extended to 31-Jul-2021

c) ITC-04 due date for Jan-Mar 2021 extended to 30-Jun-2021

d) Cumulative application of rule 36(4) for availing ITC for tax periods April, May and June, 2021 in the return for the period June, 2021.

e) Allowing filing of returns by companies using EVC till 31-Aug-2021.


Annual Return FY 2020-21

(i) Self-certification of reconciliation statement in GSTR-9C - CA certification not required

(ii) GSTR-9/9A optional if aggregate annual turnover is up to Rs 2 crores

(iii) GSTR-9C mandatory if annual aggregate turnover above Rs 5 crores