Benefits for Senior Citizens Under Income Tax Act 1961- At a Glance

 

 

·         Senior Citizen must be of the age of 60 years or above but less than 80 years at any time during the respective year

·         Very Senior Citizen must be of the age of 80 years or above at any time during the respective year.

CBIC notifies lower turnover threshold for e-invoicing and Quarterly Return Monthly Payment scheme effective 1 January 2021

 

This Tax Alert summarizes recent notifications ^[1] and circular ^[2] issued by the Central Board of Indirect Taxes and Customs (CBIC) under the Goods and Services Tax (GST).

  

The key changes are:

  

Finance Minister announces Diwali bonanza for developers and new home buyers

 

 

Relevant provisions of Income-tax laws (ITL):

 

·         Where any person has received consideration for transfer of an immovable property^[1], being land or building or both, and such consideration is less than the value^[2] adopted or assessed by authorities for the purpose of stamp duty, for computing profits and gains on transfer, the value adopted by the authorities is deemed to be the consideration (deemed consideration provision).

Key changes and extensions notified with respect to several GST compliances – Notifications issued

We wish to update you on the recent notifications issued by Central Board of Indirect Taxes and Customs (“CBIC”) which have brought about several changes to the existing GST compliance system.

The summary of the notifications is as below:

 

·                E-invoicing shall be applicable from 1 January 2021 for registered tax payers whose turnover exceeds INR 100 crores in any preceding financial year from 2017-18 onwards (ref – Notification No. 88/2020 – Central tax). 

·                Introduction of Central Goods and Services Tax (Thirteenth Amendment) Rules, 2020: The rules have introduced an advanced version of the existing GST return filing system and brought about a series of changes in furnishing Form GSTR 1, Form GSTR 3B and other specified returns under the GST law. (ref – Notification No 82/2020 – Central Tax). Following are the key highlights of the notified changes:

 

-   New scheme prescribed for registered persons furnishing quarterly Form GSTR 1 in terms of reporting of outward supplies using an invoice furnishing facility (‘IFF’), manner of opting for furnishing quarterly return under the new scheme and monthly payment of tax;

 

-   Following details shall be made available to recipients in Form GSTR 2A:

 

·         Details of outward supplies reported by suppliers, including non-resident taxable persons;

·         Invoices furnished by an ISD;

·         TDS and TCS reported by deductors and e-commerce operators;

·         IGST paid on import of goods / goods brought in DTA from an SEZ unit or a SEZ developer under a bill of entry;

-   Notified Form GSTR 2B along with its format (Rule 60(7) of CGST Rules, 2017);

 

-   Notified due dates for furnishing Form GSTR 3B for categorized registered tax payers for the period October 2020 to January 2021;

 

·                Extension in time limit for furnishing monthly Form GSTR 1 till 11^th of the subsequent month and quarterly Form GSTR 1 till 13^th of the month succeeding the said quarter w.e.f. 1 January 2021 (ref – Notification No. 83/2020 – Central tax). 

·                New scheme introduced for registered persons furnishing returns on a quarterly basis in terms of exercising the option to file quarterly returns, mechanism of filing outward supplies and monthly payment of tax thereon (ref – Notification No. 84 & 85/ 2020 – Central Tax). 

·                Rescinds Notification No.76/2020 – Central tax dated 15 October 2020 which provided for due dates for filing Form GSTR 3B for the tax periods from October 2020 to March 2021 since the said due dates have been re-notified vide Notification No 82/2020 – Central Tax (ref – Notification No. 86/ 2020 -Central Tax);

·                Extension in time limit for furnishing declaration in Form ITC – 04 in respect of goods dispatched to / received from a job worker, during the period from July 2020 to September 2020 till 30 November 2020. Further, the extension in time limit is provided with a retrospective effect from 25 October 2020 (ref – Notification No. 87/2020 – Central tax). 

Surcharge on Dividend Income of Resident Individual-AY 21-22

 

Finance Act 2019 introduced the enhanced surcharge on Individuals (Resident or Non-resident), ranges from 10% to 37%, and through other amendments, the surcharge on Capital Gains taxable u/s 111A and 112A was restricted to 15%. In view of distinct rate of taxation of capital gains taxable u/s 111A and 112A, the separate surcharge amount can be computed on

Section 206C(1H) : TCS on Sale of Goods

Section 206C of the Income Tax Act provides for the collection of tax at source (TCS) on the business of trading in alcohol, liquor, forest produce, scrap, etc. In order to widen and deepen the tax net, two new sub-sections (1G) and (1H) to section 206C has been inserted by the Finance Act 2020 with effect from 1^st October 2020.

Taxation for Individual/HUF (Resident or Non-resident) Opting for taxation under Section 115BAC

a)      Concessional Tax rates

Total Income	Tax rate
Upto Rs. 2,50,000	NIL
From Rs 2,50,001 to Rs 5,00,000	5%
From Rs 5,00,001 to Rs 7,50,000	10%
From Rs 7,50,001 to Rs 10,00,000	15%
From Rs 10,00,001 to Rs 12,50,000	20%
From Rs 12,50,001 to Rs 15,00,000	25%
Above 15,00,000	30%

 

b)      Conditions to be full-filled for availing option u/s 115BAC