Year end & New Year Challenges

 

2020-21 ends today.

2021-22 begins next day.

BULLET POINTS

Income Tax

1. PAN if not linked with Adhaar by 31 March’2021 shall remain inoperative till such period, it is linked. Inoperative PAN means TDS will be  deducted at higher rates, ITR cannot be filed and penalty of 10,000/- may be imposed.

2. 31.03.2021 is last date to file/revise ITR of FY 2019-20.

3. 31.03.2021 is last date of investments for deduction u/s 80C or 80D etc for FY 2020-21.

4. 31.03.2021 Is last date to file Q1 & Q2 TDS Returns of FY 2020-21 without Late Fee.

5. Next Year wef 01.07.2021 TDS @ 0.1% will have to be paid on Purchases of more than 50 Lacs if Turnover in FY 2020-21 exceeded 10 Crore. u/s 194Q.

6. Charitable Institutions/Trusts already registered with Income Tax Deptt  will have to re-register themselves in 2021-22.

7. Income Tax Audit will not be required for FY 2020-21 for persons having turnover up to 10 Crores if Cash Component does not exceed 5% of total Receipts/Payments. Payments received or made by cheque other than Account Payee Cheques will be counted as cash component

8 ITR of FY 2020-21 can not  be filed after 31.Dec’21. ( means 3 months lesser period made available next year )

 

 

GST

1. Existing LUT for export without payment of IGST expires on 31.03.2021. Seek renewal for 2021-22.

2. Those who want to opt in or opt out of QRMP scheme for Q1/2021-22 can do so by 30.04.2021.

3. 31.03.2021 is last date of GST Audit and  filling Annual Return of 2019-20. This Year’s Finance Bill has scrapped Sec 35(5). GST Audit, therefore stands abolished for coming years.

4. Those willing to shift to Composition Scheme for 2021-22 can do so by filling CMP 02 by 31.03.2021.

5. E-Invoicing made mandatory wef 01.04.2021 for dealers with Annual Turnover of 50 Cr or more in any preceding Year. Those buying from such dealers without  E-Invoice will loose Input Tax Credit on such purchases.

6. Till now HSN code was not mandatory for dealers up to 1.5 Cr.  2/4 Digits HSN was required from others.      Wef 01.04.2021  4 digits HSN has been made mandatory for dealers having Turnover up to 5 Cr in 2020-21 for B2B transactions. 6 Digits HSN is mandatory for others both for B2B & B2C transactions.  Export Invoices will have 8 digits HSN as per the requirement of FTP (Foreign Trade Policy). HSN details will have to be given in GSTR1 also. Those who do not follow new HSN rules, will face penalty of 50,000.00 u/s 125 alongwith other liabilities.

7. QR code for B2C transactions for dealers having turnover more than 500  Cr in any preceding  year is mandatory wef 01.04.2021.  

 

Companies Act

Every Company which uses software to maintain its accounts,  shall use such accounting software which has edit log of each and every transaction, every change made in books of accounts along with the date when such changes were made and ensuring that audit trail cannot be disabled. (Applicable from 01.04.2021)