Thursday, 21 July 2022

Mandatory online filing of Income tax forms.

 


CBDT (DGIT Systems) vide notification no. 03/2022 dated 16.07.2022 has prescribed the following forms to be filed electronically :

1. Form 3CEF – Annual Compliance Report on Advance Pricing Agreement.

2. Form 10F – Information to be furnished u/s 90(5) or 90A(5) of the Income-tax Act.

3. Form 10IA – Certificate of the medical authority for certifying ‘person with disability’, ‘severe disability’, ‘autism’, ‘cerebral palsy’ and ‘multiple disability’ for purposes of section 80DD and section 80U.

4. Form 3BB - Monthly statement to be furnished by a Stock Exchange in respect of transactions in which client codes have been modified after registering in the system for the month of.

5. Form 3BC - Monthly statement to be furnished by a Recognized Association in respect of a transactions in which client codes have been modified after registering in the system for the month of.

6. Form 10BC - Audit report under (sub-rule (1) of rule 17CA) of Income-tax Rules, 1962, in the case of an electoral trust.

7. Form 10FC - Authorization for claiming deduction in respect of any payment made to any financial institution located in a Notified jurisdictional area.

8. Form 28A - Intimation to the Assessing Officer under section 210(5) regarding the Notice of demand under section 156 of the Income-tax Act, 1961 for payment of advance tax under section 210(3)/210(4) of the Act.

9. Form 27C - Declaration under sub-section (lA) of section 206C of the Income-tax Act, 1961 to be made by a buyer for obtaining goods without collection of tax.

10. Form 58D - Report to be submitted by a public sector company, local authority or an approved association or institution under clause (ii) of sub-section (5) of section 35AC of the Income-tax Act, 1961 to the National Committee on a notified eligible project or scheme.

11. Form 58C - Report to be submitted under clause (ii) of sub-section (4) of section 35AC of the Income tax Act, 1961 to the National committee by an approved association or institution.

12. Form 68 - Form of application U/s 270AA(2) of the Income Tax Act, 1961.

Now let us analyse the impact of few forms.

Form 10-IA to be filed electronically

As per the Income Tax Act, 1961, in case of person with disability, deduction is allowed u/s 80U and incase of a dependent with disability, deduction is allowed u/s 80DD.  Disability u/s 80U & 80DD includes Autism, Cerebral palsy Multiple Disabilities, Person with disability and severe disability.

A Certificate of the medical authority for certifying ‘person with disability’, ‘severe disability’, ‘autism’, ‘cerebral palsy’ and ‘multiple disability’ for purposes of section 80DD and section 80U was required to be obtained in Form 10-IA for claiming deduction.  As per the attached notification no.03/2022 dated 16-July-2022, FORM 10-IA is required to be furnished electronically effective from the date of the notification.

The implication of the above notification is:

1.       Individuals are required to file Form 10-IA electronically on the Income tax portal to claim deduction u/s 80DD/80U.

2.       Individuals are now required to provide e-filed Form 10-IA to their employers along with physical certificates.

 

Therefore, going forward we must mandatorily obtain the electronically filed Form 10-IA along with the physical certificates before proceeding to give deduction u/s 80DD or 80U to any of our employees of STL India

Form 10F to be filed electronically

Foreign payments are an important part of our business and with Foreign Payments come compliances.

In case of a payment to any of our foreign vendor from STL India, we are required to obtain the documents mentioned below, to analyze the withholding obligation and withheld taxes before making the payment:

1.       Form 10F – A declaration given by Non-Residents stating that they are tax resident of a country other than India.

2.       No PE Declaration – A declaration given by Non-Residents stating that they do not have a permanent establishment in India.

3.       Tax Residency Certificate – A Certificate issued to the Non-resident by the Tax Authority of the Country in which it is a resident.

As per the attached notification no.03/2022 dated 16-July-2022, FORM 10F is required to be furnished electronically effective from the date of the notification.

The implication of the above notification is:

3.       Non-Residents are required to file Form 10F electronically on the Income tax portal.

4.       Non-residents are now required to provide e-filed Form 10F to their customers in India.

5.       Physically signed declarations in Form 10F are no longer valid.

Therefore, going forward we must mandatorily obtain the electronically filed Form 10F before proceeding to make any payments to our foreign vendors from STL India

No comments:

Can GST Under RCM Not Charged and Paid from FY 2017-18 to October 2024 be Settled in FY 2024-25?

 In a recent and significant update to GST regulations, registered persons in India can now clear unpaid Reverse Charge Mechanism (RCM) liab...