Contents
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Section I--Authorised Representatives, Time Limits and Basic Considerations Regarding Notices |
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1 |
Authorised Representative |
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Replace Item 3(viii) |
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Persons who can be authorised representative |
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Insert New Chapter |
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1A |
Important Amendments by Finance Act, 2021 |
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I. Residential Status |
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Tax treatment of stateless persons |
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II. Exempt Incomes |
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Raising limit of aggregate annual receipts under section 10(23C)(iiiad)/(iiiae) and providing cap on exemption on person specific rather than institution specific |
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Corpus donations and institutions specified under section 10(23C)(iv)/(v)/(vi)/(via) |
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Treatment of deficit of earlier year |
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III. Charitable Trusts |
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Voluntary contributions received by trust to be kept invested in specified modes of investment |
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Money utilised out of corpus funds or out of loan or borrowings not to be treated as application of income |
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Treatment of deficit in case of trust |
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Trust approved under section 10(23C) or notified under section 10(46) can claim benefit of only one section either section 10(23C) or section 10(46) or section 11 |
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IV. Salary Income |
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Tax on interest from provident funds |
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V. Business Income/Capital Gain |
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Tolerance band under section 43CA/56(2)(x) raised to 20 per cent in certain cases [From assessment year 2021-22] |
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Restricting scope of section 44ADA to individual/partnership firm |
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VI. Deduction Under Chapter VI-A |
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Relaxation in conditions for availing of benefit of section 80EEA |
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Tax incentives to rental housing projects |
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Extending time limit for approval of affordable housing project for availing of deduction under section 80-IBA of the Act |
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Sun-set date for investment in eligible start-up extended to 31-3-2022 |
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Rationalization of provisions as to start-ups |
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VII. Return of Income and Assessment |
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Rationalisation of due date for filing of return of income in case of partner of a firm |
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Reduction in time limit for service of intimation under section 143(1) |
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Enhancing scope of prima facie adjustments |
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Reduction in time limit for completion of assessments |
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VIII. Miscellaneous |
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Tax Concessions to Unit in International Financial Services Centre |
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Principal Chief Commissioner/Chief Commissioner empowered to make revision |
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IX. Interest and Fee [Sections 234C, 234G and 234H] |
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Dividend income and interest under section 234C |
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Late fees under section 234F reduced to Rs. 5,000 |
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Fee for defaults relating to statement or certificate [Section 234G] |
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Fee for default relating to intimation of Aadhaar number |
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2 |
Time Limits |
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Replace Items 2, 3, 4 and 7 |
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Assessment related time limits |
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Reassessment related time limits |
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Time limit for completion of assessment and reassessment |
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Appeal related time limits [Read with Chapter Supreme Court on Limitation] |
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Insert New Chapter |
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2A |
Extended Time Limits |
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Period of Limitation Under Income Tax |
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Interest to be paid |
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Date of investment for purposes of sections 54 to 54GB |
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Insert New Chapter |
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2B |
Supreme Court Decision on Limitation |
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3 |
Applications/Reports to be Filed Under Income Tax Law |
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Replace Item 1 |
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Applications, Certificates, Reports, etc., Prescribed under Income Tax Rules, 1962 |
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Section II--Faceless Proceedings Under Income Tax Act |
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Replace Chapter |
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10 |
Faceless Assessment Scheme, 2019 |
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Introduction |
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Applicability of the scheme |
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Assessments covered |
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Setting up of assessment centers |
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National E-Assessment centre to be communication central |
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How assessment will be made |
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Penalty for non-compliance with notice issued under the Scheme |
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Appellate Proceedings |
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Exchange of communication exclusively by electronic mode only |
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Authentication of electronic record |
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Issue of notice and filing of response thereto |
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E-mail address to be used for communication |
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Personal appearance and video conferencing |
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Modification of provisions of the Act |
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Important terminologies |
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Guidelines for the implementation of Faceless Assessment Scheme, 2019 |
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Issues and challenges |
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11 |
Faceless Assessment, 2020 |
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Replace Item 9 |
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Authentication of electronic record |
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12 |
Faceless Appeal Scheme, 2020--Procedure and Issues |
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Replace Item 3 |
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Important terminologies |
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Section V--Deemed Accrual/Arisal of Income |
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25 |
Handling Notice Regarding Deemed Accrual/Arisal of Income |
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Replace Item 6(v), at Page 263 |
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‘Business connection’--Meaning of |
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Insert New Item 14A, at Page 291 |
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Payment for supply of shrink-wrapped software--Not amount to royalty |
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Replace Item 33, at Page 280 |
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Extending source rule in case of income from advertisements, income from sale of data or income from sale of goods or services in certain cases |
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Insert New Chapter |
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25A |
Procedure to Get Away With Retro Tax |
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A. Amendments by The Taxation Laws (Amendment) Act, 2021 |
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Amendment of Explanation 5 by the The Taxation Laws (Amendment) Act, 2021 |
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Amendment of validation clause |
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Procedural Aspects |
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Specified conditions under Explanation to fifth and sixth proviso to Explanation 5 to clause (i) of sub-section (1) of section 9 |
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Manner of furnishing undertaking under rule 11UE |
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Relaxation of Validation (section 119 of the Finance Act, 2012) Rules, 2021 |
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27 |
Furnishing of Statement by Investment Fund |
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Replace Item 5 |
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Guidelines for application of section 9A |
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Insert New Chapter |
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27A |
Availing Exemption for LTC Cash Scheme [Section 10(5)] |
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Related provisions |
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Meaning of the term family [Explanation to section 10(5)] |
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Amount of exemption under section 10(5) read with rule 2B |
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Exemption only in respect of two journeys in a block of four years |
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Scope of exemption under section 10(5) |
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Special provisions for the assessment year 2021-22 only |
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Procedural Formalities |
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Procedural aspects to avail of option |
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Who is eligible for exemption |
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When exemption allowable |
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Amount of exemption |
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Conditions to be satisfied |
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Only one exemption in block of four years |
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Section VI--Claiming of Exemption |
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Replace Chapter 35 |
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35 |
New Rules Regarding Approval to Fund or Trust or Institution or University, etc. |
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Theoretical Back-up |
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Fund or trust or institution, etc. to make application for approval/re-approval--New procedure |
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Compulsory re-approval of all fund or trust or institution, etc., approved as on 1-4-2021 |
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Where approval of trust, etc., is about to expire |
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Where the fund, etc., is provisionally approved |
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Any other case |
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Fate of pending applications |
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Procedural Formalities |
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New rules for approval |
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Applicable form |
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Accompaniments to application (As per rule 2C) |
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Attachments to Form No. 10A |
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Who will verify Form No. 10A/10AB |
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Proceeding on filling up Form No. 10A |
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Default consequences |
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Fate of provisional application |
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Order of approval/rejection where application is made in Form No. 10AB |
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Section VII--Charitable Trusts/ Institutions |
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Replace Chapter 47 |
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47 |
New Provisions As to Registration and Compulsory Re-regist. of Charitable Trusts |
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Position upto 31-3-2021 |
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The amendment |
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New conditions for registration |
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Compulsory re-registration of all trusts, etc. |
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Where the trust or institution is registered under newly inserted section 12AB |
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Where registration has been granted provisionally |
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Where registration has become inoperative |
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Where objects of the trust has been modified |
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Any other case |
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Fate of pending applications |
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Provisions illustrated |
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Cancellation of registration |
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Effect of cancellation |
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Procedural Aspects |
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Procedure for Registration/Re-registration |
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Institutions referred to in section 12A(1)(ac) |
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Manner of making application |
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Who shall verify application |
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Accompaniments to application (As per rule 17A) |
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Documents to be attached (As per form no. 10A) |
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Procedure on receipt of Form No. 10A/10AB |
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Default consequences |
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Approved/rejection where application filed in Form No. 10AB |
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Provisional registration |
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Section X--Salary Income and Income from House Property [Sections 17 and 23] |
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54 |
Issuance of Form No. 16 by Employer |
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Replace Item 2 |
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Time limit to issue Form 16 extended |
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Insert New Item 7A |
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Substitution of annexure in Form 16 |
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Insert New Chapter |
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55A |
Determination of Annual Accretion for Purpose of Section 17(2)(viia) |
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Annual accretion by way of interest, dividend etc. to be treated as perquisite |
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Determination of annual accretion |
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Section XII--Depreciation |
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Insert New Chapter |
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66A |
Procedure to Make Adjustments Related to Goodwill |
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Theoretical Backup |
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Legal position upto assessment year 2020-21 |
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Goodwill held eligible for depreciation |
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Amendments by Finance Act, 2021--Effective from assessment year 2021-22 |
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Goodwill not to form block of asset and no depreciation allowable thereon |
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Cost of acquisition of goodwill of a business or profession where depreciation has been claimed |
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Amendments summarized |
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Impact of all above amendments |
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Procedural Aspects |
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Re-Determination of written down value of block of assets which included goodwill |
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Subsequent transfer of goodwill on which depreciation allowed to give rise to capital gains |
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Impact on tax audits |
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Section XIII--Business Deductions [Sections 33AB, 33ABA, 35, 35AC, 35CCA, 35D, 36 and 37(1)] |
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Insert New Chapter |
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75A |
Intimation By Research Associations/University, etc. |
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Deduction for any sum paid to a company for carrying out scientific research not to be denied merely because of withdrawal of approval to company |
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Approved scientific research association, etc. to apply for fresh approval and restriction on period of approval |
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Procedural Aspects |
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Intimation under Fifth Proviso to sub-section (1) of section 35 |
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Form of intimation |
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Accompaniments to application |
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Applicable section codes |
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Documents to be uploaded |
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Mode of furnishing |
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Proceedings on receipt of Form No. 10A |
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Insert New Chapter |
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75B |
Deduction under Section 35 to be Based on Certificate |
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Theoretical Backup |
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Statement of donations |
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Fee and penalty in case of failure |
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Procedural Aspects |
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Procedure for issuance of certificate |
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Prescribed authority |
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Form in which statement of particulars to be furnished |
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Aggregation |
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Mode of furnishing |
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Certificate |
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Insert New Chapter |
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77A |
Online Application for Approval under Section 35(1)(ii)/(iia)/(iii) |
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Guidelines, from and manner in respect of approval under section 35(1)(i)/(ii) |
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Procedural Aspects |
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Prescribed authority, guidelines, form, manner and conditions for approval under section 35(1)(iia) |
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Uniform Form 3CF for purposes of section 35(1)(ii)/(iia)/(iii) |
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Documents required to be attached with Form 3CF |
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Insert New Chapter |
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87A |
Delayed Remittance of Employees Share in PF/ESI by Employer--Tax Treatment |
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Related provisions upto 31-3-2021 |
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The controversy |
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View of Tribunal Benches holding that contribution not deposited as per scheme of section 36(1)(va) is income of employer |
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High Courts' view holding that employee's contribution deposited before due date for return is allowable |
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Opposite view of Gujarat and Kerala High Court |
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Position emerging as of now |
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Department’s view |
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Amendment by the Finance Act, 2021 |
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Caution : Consequence of amendment |
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Practice Tips : Whether prima facie adjustment as to delayed remittance of PF/ESI can be made on basis of audit report |
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Caution : What if the assessee does not add the employees’ share (remitted belatedly) in his total income |
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Provisions illustrated |
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Practice Support : Proving that amendment applies prospectively |
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Section XVI--Tax Audit under Section 44AB |
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118 |
Requirements as to Tax Audit under Section 44AB |
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Replace Item 1 |
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When is tax audit required to be done |
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Replace Item 4 |
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Due date for completing audit and furnishing of audit report |
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Replace Item 48 |
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Presumptive Incomes and Tax Audit |
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Insert New Items 1A to 1E |
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Persons carrying on business required to get his accounts audited on compulsory basis |
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Effective limits for person carrying on business [From the A.Y. 2021-22] |
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Inclusions/exclusions in receipts/expenditure |
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Different situations identified |
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Provisions illustrated |
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Replace Item 53 at Page 1005 |
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Clause 30C of Form No. 3CD--General Anti Avoidance Rules |
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Replace Item 68 at Page 1012 |
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Clause 44 of Form No. 3CD--GST details |
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Insert New Chapter |
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118A |
Tax Audit (Procedural Amendments) |
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Revision of tax audit reports |
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Substitution of clause 8A of Form No. 3CD |
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Substitution of clause 17 of Form No. 3CD |
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Amendment of clause 18 of Form No. 3CD |
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Substitution of clause 32(a) of Form No. 3CD |
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Omission of clause 36 of Form No. 3CD |
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Deferment of reporting under clause 30C and 44 of Form No. 3CD |
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Section XVII--Capital Gains |
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121 |
Handling Notice under Section 45(4) |
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Insert New Item 1A |
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The amendment |
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Chapter 121 & 122, Insert in Heading |
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[Applicable Upto Assessment Year 2020-21] |
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Insert New Chapter |
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122A |
New Rules for Taxation in Case of Re-constitution/ Dissolution of Specified Entity |
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I. Distribution of Capital Assets or Stock-in-trade on Re-constitution of Firm--The Charging Provisions |
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The charging provisions |
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Specified entity |
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Specified person |
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What is reconstitution |
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Distribution of capital asset or stock-in-trade and basis of charge |
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Chargeability to tax |
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How profits will be taxed |
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Year of chargeability |
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When stock-in-trade is distributed on reconstitution/dissolution |
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Computation of capital gains when capital asset is received by specified person on dissolution/reconstitution |
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Difficulty arising |
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II. Money or Capital Asset in Excess of Capital Balance Distributed to Partners to be Taxed in Hands of the Specified Entity and Scope of Section 45(4) Extended to Reconstitution of Firm |
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The amendment |
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Nature of section 45(4) |
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Conditions precedent for applicability of section 45(4) |
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Who is treated as transferor? |
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Who is liable to tax on capital gain? |
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Amount that will be charged to capital gain under section 45(4) |
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Determination of full value of consideration |
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Computation of capital gains |
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Year of chargeability |
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Balance in capital account--How to be arrived at |
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Capital balance of which date |
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Terminologies defined |
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Nature of gain under section 45(4) |
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III. Different Situations Identified |
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Determination of full value of consideration in hands of specified entity later on |
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How to attribute amount taxed under section 45(4) |
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Procedural aspects |
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When amount taxed shall relate to revaluation of any capital asset |
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No depreciation on revaluation amount |
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IV. CBDT Clarifications |
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Law explained |
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Binding force |
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Extension of scope of section 48(iii) to depreciable assets being capital assets |
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Examples |
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V. Provisions Illustrated |
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VI. Key Take Aways |
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123 |
Handling Notice Denying Claim for Transaction not Being Regarded as Transfer under Section 47 |
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Add After Item 1 |
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Relocation of capital asset to be tax neutral in certain case |
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Exemption from capital gain tax transfer of capital asset by India Infrastructure' Finance Company Limited to an institution established for Financing the Infrastructure and Development |
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Exemption from capital gain to transfer of capital asset, by a public sector company to another public sector company |
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Reference of section 47(viiac) to 47(viiaf) inserted in proviso to section 56(2)(x) |
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Insert New Chapter |
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130A |
Slump Sale |
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I. Expansion of Scope of Slump Sale [Section 2(42C)] |
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Position upto assessment year 2021-22 |
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Amendment by the Finance Act, 2021 |
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Why this amendment |
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Sale of undertaking in exchange of bonds/preference shares not amount to sale |
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Transfer of business undertaking as a going concern under amalgamation |
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Slump sale scope not restricted only to sale |
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Arrangement does not amount to sale |
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Scope of slump sale extended to all modes of transfer referred to in section 2(47) by Finance Act, 2021 |
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Impact of amendment |
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II. Change in Method of Computation of Capital Gains from Slump Sale [Section 50B] |
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Position upto assessment year 2020-21 |
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Determination of net worth and full value of consideration in slump sale |
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Impact of amendment |
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Procedural Aspects |
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Determination of Fair Market Value of Capital Assets for the purposes of section 50B of the Income-tax Act |
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Section XIX--Income from Other Sources [Sections 56 and 59] |
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145 |
Handling Notice under Section 56(2)(x) |
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Replace Item 1 |
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Tax on sum/property received without consideration |
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Tolerance band under section 43CA/56(2)(x) raised to 20 per cent in certain cases [From assessment year 2021-22] |
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Replace Item 3 |
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Specified property chargeable under section 56(2)(x) |
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Replace Item 4 |
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Exclusions--Receipts that will not be taxed |
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Section XXII--Losses [Sections 70 to 80] |
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173 |
Handling Notice under Section 72A for Withdrawing Benefits Granted |
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Add After Item 1 |
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Amendment in definition of demerger so as to pave way for restructuring of public sector companies |
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178 |
Handling Notice under Section 79 |
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Replace Item 3 |
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Exception to provisions of section 79(1) |
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Section XXIV--Authorised Representatives, Time Limits and Basic Considerations Regarding Notices |
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Insert New Chapter |
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190A |
All Institution or Fund Approved for Purposes of Section 80G(2)(a)(iv) |
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New rules regarding time limit for application for approval |
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Action to be taken by PCIT/CIT where trust or institution stood approved on 1-4-2021 |
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Action to be taken by PCIT/CIT, where application made before expiry of approval |
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Where the institution or fund makes an application for approval in any other case |
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Fate of pending applications |
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Applicability of approval |
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Procedural Aspects |
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Procedure for approval/Re-approval |
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Who is applicant under section 80G(5)(vi) |
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Form of application |
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Accompaniments to application (As per rule 11AA) |
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Documents to be attached (As per Form No. 10A) |
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Procedure on receipt of Form No. 10A or 10AB |
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Approval/rejection where application made in Form No. 10AB |
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Provisional approval |
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Insert New Chapter |
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190B |
Trust or Institution Approved for Purposes of Section 80G |
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The requirement |
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Effect of amendment |
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Consequences of non-compliance |
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Procedural aspects |
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Insert New Chapter |
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190C |
Filling Up Form No. 10A/10AB/10BD |
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Filling up Form No. 10A |
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Form No. 10A |
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Filling up Form No. 10AB |
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Form No. 10AB |
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Filling up Form No. 10BD |
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Form No. 10BD |
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Insert New Chapter |
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190D |
FAQs on Form No. 10A |
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Section XXVII--Co-operative Society |
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202 |
Handling Notice to Co-operative Society in Relation to Deduction under Section 80P |
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Add Items 10A and 10B |
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Co-operative society taking deposits from non-members and earning interest income--Whether eligible for deduction under section 80P(2)(a)(i) |
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Facts of the case in Mavilayi Service Co-operative Bank Ltd. v. CIT 2021 TaxPub(DT) 273 (SC) : (2021) 431 ITR 1 (SC) |
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Section XXIX--Transfer Pricing and Tax Avoidance Provisions [Sections 92C to 94] |
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207 |
Notice under Section 92CA by TPO Before Fixing ALP |
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Insert New Item 7A |
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Faceless scheme for reference to TPO |
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210 |
Furnishing of Information and Documents by Constituent Entity |
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Procedural Formalities |
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Page 1943, Replace Item A and B |
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Furnishing of report of the information |
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Furnishing of information in case of more than one constituent entities resident in India |
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211 |
Furnishing of Report in Respect of International Group |
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Procedural Formalities |
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Page 1952, Replace Item E and F |
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Relaxation regarding furnishing of report under section 286 in respect of international group |
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Prescribed Income-tax authority for purpose of section 286 |
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220 |
Opting for New Taxation Regime By Individual/HUF |
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Procedural Aspects |
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Replace Item 12 |
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Method of computing depreciation |
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Exercise of option |
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Person having salary income--Whether to file Form No. 10-IE |
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Unabsorbed depreciation to be adjusted once option is exercised under section 115BAC |
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Steps to be taken while opting for section 115BAC by individual/HUF carrying on business |
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Is opting for section 115BAC result in disallowance of all losses |
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221 |
Option for New Taxation Regime for Resident Co-operative Societies [Sec.115BAD] |
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Procedural Aspects |
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Insert New Item 9A |
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When option as to applicability of section 115BAD be exercised |
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Replace Item 10 |
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Unabsorbed depreciation to be adjusted once option is exercised under section 115BAD |
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Section XXX--Corporate Taxation [Sections 115BAA, 115BAB, 115JAA, 115JB, 115P, 115Q, 115-S, 115T & 115VP] |
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228 |
Handling Notice under Section 115JB for Making Enquiry and for Furnishing Certificate as per Section 115JB(4) |
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Insert New Items 2A to 2G |
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Dividend income and expenditure thereof to be excluded while computing books profits in case of a foreign company |
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Re-computation of book profits in case of transfer pricing adjustments |
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Method of recomputation of book profit |
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Adjustment in book profit |
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Adjustment in tax credit |
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Procedure for claiming relief |
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Authority empowered to prescribe related procedure |
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Insert New Chapter |
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249A |
Proving That Income Surrendered in Survey is Business Income |
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Case Study |
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Appropriate Solution |
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Insert New Chapter |
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252A |
Procedure for Faceless Inquiry |
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Introduction |
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Scope of the Scheme |
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Making available the information |
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Initial verification |
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Random Allocation of information |
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Issue and service of notice |
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Response to notice |
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No personal appearance |
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Communication exclusively by electronic mode |
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Authentication of electronic record |
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254 |
Filing Return of Income |
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Replace Item 1 at Page 2194 |
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Due date for filing the return of income [From assessment year 2021-22] |
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Page 2194 Replace Item 2 |
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Applicable form of return of income and mode of furnishing of return |
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Page 2181, Add After Item 10 |
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Exemption from filing of Return--Certain non-residents to get exemption from filing of Return |
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Page 2183, Replace Item 14 |
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Verification of return of income [Section 140] |
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Page 2188, Replace Items 22 and 23 |
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Procedure to file a belated return [Section 139(4)] |
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Procedure to revise return of income already filed by assessee [Section 139(5)] |
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256 |
Handling Notice under Section 139(9) Pointing Out Defects in Return |
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Insert New Item 1A |
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Relaxation in defective return criteria |
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257 |
Application for Allotment of PAN under Section 139A |
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Replace Item 3 |
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Class or classes of person to whom provisions of section 139A shall not apply |
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259 |
Handling Notice Under Section 142(1) |
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Add After Item 1 |
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Allowing prescribed authority to issue notice under clause (i) of sub-section (1) of section 142 |
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264 |
Handling Notice under Section 143(2)(ii) as to Scrutiny Assessment |
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Insert New Item 37A |
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Reduction in time limit for service of notice for scrutiny of assessment |
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Insert New Chapter |
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279A |
Judicial Opinion on Validity of Notices Issued under Old Section 148 after 31-3-2021 |
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Related Notifications |
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Extension time lines |
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Procedure to be followed w.e.f. 1-4-2021 before issuing notice under section 148 |
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Issuance of notice after 1-4-2021 without following procedure of section 148A--Stay granted |
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Notice issued under old law upto extended date held valid by the Chhattisgarh High Court |
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Allahabad High Court View in Ashok Kumar Agarwal v. UOI & 2 Ors., 2021 TaxPub(DT) 5251 (All-HC) |
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Rajasthan High Court judgment |
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The prayer in Mon Mohan Kohli v. ACIT W.P.(C) 6176/2021 (Del-HC), dated 15-12-2021 |
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Ruling of the Delhi High Court |
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The way ahead |
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Insert New Chapter |
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279B |
Re-assessment Revamped |
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I. Position upto 31-3-2021 |
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II. New Procedure for Reassessment |
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Power to reassess |
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Power extended to assess any other income also |
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Procedure before issuing notice for reassessment |
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Issuance of notice |
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Conditions precedent for issuance of notice |
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When information can be said to suggestive of escapement |
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Deemed information in possession |
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Time limits for reopening the assessment [Section 149] |
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No notice under section 148 where search conducted upto 31-3-2021 |
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Exclusion of certain time limits |
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Sanction for issue of notice |
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Faceless reassessment |
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280 |
Notice under Section 143(2) While Making Assessment under Section 153A |
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Insert New Item 1A |
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No search assessment under section 153A where search initiated on or after 1-4-2021 |
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Insert New Item 32A |
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Sun set clause to special procedure for search assessments |
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New procedure in search assessments |
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287 |
Handling Notice under Section 153C on Basis of Search on Other Assessee |
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Insert New Item 1A |
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Provision contained in section 153C not applicable w.e.f. 1-4-2021 |
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326 |
Furnishing TDS Related Obligations |
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New TDS obligations after amendment by Finance Act, 2021 |
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Insert New Chapter |
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330A |
Procedure to be Followed by Senior Citizens Claiming Benefit of Section 194P |
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Theoretical Backup |
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Benefit when available to senior citizens under section 194P |
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Meaning of specified bank |
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Meaning of specified senior citizen |
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Procedural Aspects |
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Procedure for furnishing declaration and evidence of claims by specified senior citizen |
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Information to be provided in declaration in Form No. 12BBA |
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Reference of section 194P included in TDS certificate and TDS statement |
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Insert New Chapter |
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330B |
Tax Deduction by Buyer of Goods in Certain Cases [Section 194Q] |
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Who is liable to deduct tax under section 194Q |
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Whether provisions of section 194Q of the Act shall apply to buyer in the year of incorporation? |
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Meaning of buyer |
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From whom tax is to be deducted |
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Conditions for application of provisions |
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No tax to be deducted under section 194Q in certain cases |
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When tax is to be deducted |
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Timing of deduction--Where either credit or payment made prior to 1-7-2021 |
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Applicability of provisions in different circumstances |
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Limit of Rs. 50 lakhs, how to apply |
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Calculation of threshold for the financial year 2021-22 |
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Rate of tax deduction |
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Higher rate of TDS--Interplay of section 206AA, 206AB and 194Q |
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Provisions illustrated |
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Liability of non-residents to deduct tax |
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Are provisions applicable where payment is made to Non-residents |
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Determination of total sales, etc. |
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Whether turnover shall include non-business turnover |
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Treatment of GST collected |
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TDS, whether deductible on GST |
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What is meaning of the term goods |
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Applicability of provisions to goods, etc. |
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Sale of immovable properties--Whether liable to TDS |
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TDS on purchase of shares etc. |
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Applicability on transactions carried through various Exchanges |
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Personal assets being purchased |
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Cancellation of transaction |
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Purchase returns |
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Netting transactions |
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Advance against purchases |
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TDS on GST component in case of advance payments |
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Applicability of section 194Q to case of motor vehicle |
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TDS only on amount paid or credited on or after 1-7-2021 |
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Exchange of goods |
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Branch transfers |
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Aggregation of transactions |
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Whether tax is to be deducted when the seller is a person whose income is exempt |
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Interplay of section 206C(1H) and 194Q |
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Cross application of section 194-O, sub-section (1H) of section 206C and section 194Q of the Act |
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Power to remove difficulties |
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CBDT clarification on applicability of section 194-O, 194Q and 206C(1H)--Recent clarification |
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Insert New Chapter |
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337A |
Application for Obtaining Certificate under Section 195(2) and under Section 195(7) |
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Form to be used for obtaining certificate under section 195(2) and 195(7) |
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Manner for furnishing application |
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Examining of application and issuance of certificate by the assessing officer |
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Validity period of certificate issued under rule 29BA |
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Authority empowered to lay down relevant procedures |
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Procedural Aspects |
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Documents to be uploaded alongwith Form No. 15E |
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Details required to be furnished in Form No. 15E |
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341 |
Downloading and Issuance of TDS Certificate |
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Insert New Item 2A |
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Reference of section 194P inserted in rule 31(1) |
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342 |
Filing of Statement of TDS |
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Insert New Items 7A to 7C |
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Scope of sub-rule (4) of rule 31A providing duties of deductor while preparing TDS statement, extended |
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Reference of section 194P inserted in rule 31A providing form of statement of deduction of tax |
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Furnishing of evidence by specified bank under section 194P |
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346 |
Annual Statement of Tax Deducted or Collected |
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Practical Solutions |
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Mismatch in Form 26AS and amounts reflecting in books of accounts |
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Action to be taken on receipt of notice |
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347 |
Handling Notice under Section 201 in Case of Failure to Deduct or Pay Tax |
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Replace Item 2 |
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Tax deductor not to be deemed to be an assessee in-default in certain cases |
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Insert New Chapter |
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355A |
Higher Rate of Tax Deduction/ Collection in Case of Non-filers of Return |
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|
Theoretical Backup |
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The purpose |
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Payments on which higher rate of TDS will apply |
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When tax is to be deducted |
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To whom provision shall apply |
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|
Conditions precedent |
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Rate of tax deduction |
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Provisions when not applicable |
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|
Analysis of provisions |
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Different situations identified |
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Applicability of higher rate of TCS |
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Impact of amendment |
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|
Deciding rate of TDS |
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|
Applicability of section 206AB to cases covered by section 194-IB |
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|
I. CBDT Clarification |
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|
Procedural Aspects |
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|
II. Guide to Use of Functionality |
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|
III. What Tax Deductor/Collector shall do |
|
369 |
Notice and Applications under Section 245BC for Transfer of Case from One Bench to Another |
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|
Non-applicability of provision of section 245BC |
|
370 |
Application under Section 245C for Settlement of Cases |
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|
No application can be filed before Settlement Commission on or after 1-2-2021 |
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Insert New Chapter |
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375A |
Settlement Commission Abolished |
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|
Abolishing settlement commission |
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|
Amendments giving effect to abolishment of settlement commission |
|
|
Admissibility of pending applications |
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|
Rectification of order of Settlement Commission |
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|
Provisions relating to interim settlement board |
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|
Exclusion of certain time limits |
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|
Proceeding before Interim Board shall be faceless |
|
|
Power to order provisional attachment to protect revenue |
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|
Powers of Settlement Commission |
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|
Furnishing of copies of reports given by income-tax authority |
|
|
Power of Settlement Commission to grant immunity from prosecution and penalty |
|
|
Option to withdraw application for settlement |
|
|
Impact of abolishment |
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|
Constitution of Interim Board for Settlement |
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Procedural Aspects |
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|
Status of applications pending as on 1-2-2021 |
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Exercise of option to withdraw pending application |
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|
Furnishing of Form 34BB |
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|
Procedure for uploading Form No. 34BB |
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Insert New Chapter |
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375B |
Establishment of Dispute Resolution Committee |
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Introduction |
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Salient features of new scheme |
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Constitution of dispute resolution committee |
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Powers of dispute resolution committee |
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Proceedings before committee to be faceless |
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|
Persons not entitled to make application before dispute resolution committee |
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Orders which can be challenged before dispute resolution committee |
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Issues |
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Insert New Chapter |
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375C |
Procedure for Settlement before Interim Settlement Board |
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Applicability |
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E-settlemet |
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Allocation of pending applications |
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Procedure for settlement |
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|
Verification of additional facts |
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|
Proceedings not open to the public |
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|
Communication on behalf of the Interim Board |
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|
Communication exclusively by electronic mode |
|
|
Authentication of electronic record |
|
|
No personal appearance before the Interim Board |
|
|
Insert New Chapter |
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377A |
Advance Rulings Rejigged |
|
|
New scheme of advance rulings |
|
|
Applicability of advance ruling |
|
|
Appealability of order of advance ruling |
|
|
Constitution of Board for Advance Rulings |
|
|
Authority for advance ruling cease to operate from specified date |
|
|
Vacancies, etc., not to invalidate proceedings |
|
|
Reference of Central Excise Act and Finance Act removed |
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|
Transfer of application for advance ruling to Board for Advance Ruling |
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|
Procedure of advance ruling before Board of Advance rulings |
|
|
Proceedings before Board for Advance Rulings shall be faceless |
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|
Advance ruling to be void in certain circumstances |
|
|
Powers of the Authority |
|
|
Procedure of Authority |
|
|
Establishment of Boards for Advance Rulings |
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|
Procedural Aspects |
|
|
Procedure of advance ruling before Board of Advance rulings |
|
|
Proceedings before Board for Advance Rulings shall be faceless |
|
|
Insert New Chapter |
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396A |
Faceless Appeal Before Tribunal |
|
|
Appeal before ITAT to be faceless w.e.f. 1-4-2021 |
|
412 |
Handling Notice Proposing Penalty under Section 271AAD |
|
|
Provisional attachment in Fake Invoice cases |
|
448 |
Furnishing of Statement of Financial Transactions |
|
|
Add New Item 10A |
|
|
Reporting of certain incomes by specified persons |
|
|
Replace Item 12 |
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|
Time limit for furnishing of statement of financial transaction |
|
|
Add New Items 14A to 14D |
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|
Statement of Financial Transaction--Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Dividend income |
|
|
Statement of Financial Transaction--Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Interest income |
|
|
Statement of Financial Transactions (SFT)--Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Depository Transactions |
|
|
Statement of Financial Transactions (SFT)--Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent |
|
|
Insert New Chapter |
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449A |
Annual Information Statement--Law and Procedure |
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|
Theoretical Backup |
|
|
Annual Information Statement |
|
|
Procedural Aspects |
|
|
Format of annual information statement |
|
|
Part A |
|
|
AIS Features |
|
|
AIS Feedback by taxpayer |
|
|
AIS Feedback Processing |
|
|
Key Terms |
|
|
AIS Information Category |
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|
Sources of information--Receipts side |
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|
Expenses report |
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|
Cash deposits |
|
|
Cash withdrawals |
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|
Cash payments |
|
|
Foreign remittances/receipts |
|
|
Foreign travel |
|
|
Purchase of immovable property |
|
|
Purchase of vehicle |
|
|
Purchase of time deposits |
|
|
Credit/Debit card |
|
|
Balance in account |
|
|
Income distributed by business trust |
|
|
Income distributed by investment fund |
|
|
Sale of securities and units of mutual fund |
|
|
Off market debit transactions |
|
|
Off market credit transactions |
|
|
Purchase of securities and units of mutual funds |