Monday, 28 October 2019

New Tax Rate: Facts required to be considered.


1.   The Taxation Laws (Ordinance), 2019 has been promulgated by the President of India to amend the Income-tax Act, 1961 and the Finance (No. 2) Act, 2019. The Ordinance has introduced two new corporate tax rates, i.e., at 15% and 25% for the domestic companies. However, the benefit of reduced tax rate shall be available only when total income of the company is computed without claiming specified deductions, incentives, exemptions and additional depreciation available under the  Income-tax  Act.  

INSIGHT: The Arm’s-Length Standard Is Not the Problem



Next year is the 85th anniversary of the adoption of the arm’s-length standard (ALS) by the U.S. government as the norm to be used for pricing transactions among related parties for the purpose of calculating their U.S. corporate income tax (CIT).   

I mportant Clause in TAR Vs ITR




S No.
Clause in TAR
Particulars
Schedule in ITR
1
Form 3CA
In Statutory Audit was carried out by other Audit Firm, mention statutory audit was conducted by "M/s" otherwise "US"
NA
2
3CD-9(b)
Change in Partners / Members
PartA-General 2
3
3CD-10
Nature of Business, Change in Business
PartA-General 2
4
3CD-12
Presumptive Profits
PartA-P&L, Schedule BP
5
3CD-13e
Adjustmemts to ICDS
Schedule ICDS
6
3CD-14
Valuation of Stock U/s 145A
Schedule Part A - OI

7

3CD-16
Amount not credited to P&L A/c
a.  Items falling U/s 28
b.  Proforma Credits, drwbacks, refund
c.  Escalation claims, Capital Receipts etc

Schedule Part A - OI

8

3CD-18

Depreciation U/s I T Act
Schedule BP, DPM, DOA (Compare last year closing WDV with TAR and ITR)
9
3CD-19
Amounts admissible U/s 32AC - 35E
Schedule BP, ESR, RA
10
3CD-20
Amounts admissible U/s 36(1)(va) (Employee contribution to PF, ESI)
Schedule Part A - OI
11
3CD-21(a)
In TAR, it is only a disclosure. Don’t try to link all disallowance U/s 37 in ITR
Schedule Part A - OI

12

3CD-21(b)
Details of payments on TDS not deducted, TDS unpaid Vs
Clause 34(a) of TAR

Schedule Part A - OI
13
3CD-21(c)
Salary, commission, interest paid to partner U/s 40(b)
Schedule Part A - OI
14
3CD-21(d)
Disallowance U/s 40A(3)/(3A)
Schedule Part A - OI
15
3CD-21(e)
Disallowance U/s 40A(7)
Schedule Part A - OI
16
3CD-21(f)
Disallowance U/s 40A(9)
Schedule Part A - OI
17
3CD-21(h)
Disallowance U/s 14A
Schedule Part A - OI
18
3CD-21(i)
Disallowance U/s 36(1)(iii)
Schedule Part A - OI

19

3CD-23
Disclosure of PAYMENTS made to persons covered U/s 40A(2)(b) (Have to disclose all payments made to above parties and it is not limited to expenses)
PartA-BS, Schedule AL (Verify with Related Party Disclosures in Financials)
20
3CD-24
Deemed Profits U/s 32AC, 32AD, 33AB, 33AC, 33ABA
Schedule Part A - OI Schedule BP
21
3CD-25
Deemed Profits U/s 41
Schedule Part A - OI
22
3CD-26(i)(A)(a)
Disallowed U/s 43B in earlier years and paid in current year
Schedule Part A - OI
23
3CD-26(i)(A)(b)
Disclose amounts disallowed U/s 43B in earlier years and not paid in current year
Schedule Part A - OI
24
3CD-26(i)(B)(a)
Disclose payments related to current PY and paid in current PY - U/s 43B
Schedule Part A - OI
25
3CD-26(i)(B)(b)
Disclose payments related to current PY and UNPAID upto filing of ROI - U/s 43B
Schedule Part A - OI
26
3CD-26(i)(A)(a)
Disallowed in earlier years and paid in current year
Schedule Part A - OI
27
3CD-27(a)
Provide details of ITC as per books of accounts
NA
28
3CD-27(b)
Details of Prior Period Income / Expenses
Schedule Part A - OI
29
3CD-29B(a)
Income U/s 56(2)(x)
Schedule OS
30
3CD-30
Amounts borrowed / repaid U/s 69D
Schedule OS
31
3CD-32(a)
Details of Brought Forward Losses
Schedule CFL, UD
32
3CD-32(b)
Change in shareholding U/s 79
PartA-General 2
33
3CD-32(c)
Losses in Speculative Business U/s 73
Schedule BP, BFLA, CFL
34
3CD-32(d)
Losses in Specified Business U/s 73A
Schedule BP, BFLA, CFL
35
3CD-32(e)
Deemed Speculative Business U/s 73
Schedule CFL, UD
36
3CD-33
Deduction U/s Chapter VIA, Section 10A, 10AA
Schedule 10AA, 80G, 80GGA,
80, VIA

37

3CD-34a,b
Details of payments on TDS not deducted, TDS unpaid Vs
Clause 34(a) of TAR (verify with Financials, TDS returns)

NA
38
3CD-34c
Interest paid U/s 201(1A), 206C(7)
Schedule Part A - OI
39
3CD-35
Quantitative details of Inventory
Schedule Part A - OD
40
3CD-36
Details of Distributed Profits U/s 115O
Schedule DDT
41
3CD-36A(a)
Details of deemed dividends U/s 2(22)e
Schedule AL
42
3CD- 40
Details of various ratios
PartA-Trading A/c, P&L

CBDT issues second round of frequently asked questions in relation to Direct Tax Vivad Se Vishwas Scheme, 2024

  This Tax Alert summarizes Circular No. 19/2024 dated 16 December 2024 (VSV 2- December Circular) issued by the Central Board of Direct Tax...