Tax Due Date September 2023.

S. No	Due Date	Related to	Compliance to be made
1	11.09.2023	GST	Filing of GSTR-1 for August 2023.
2	20.09.2023	GST	- Payment & filing of GST return for the Month of August 2023- Form GSTR 3B
3	07.09.2023	TDS/TCS (Income Tax)	· Deposit TDS for payments of Salary, Interest, Commission or Brokerage, Rent, Professional fee, payment to Contractors, etc. during the month of August 2023. · Deposit TDS from Salaries deducted during the month of August 2023 • Deposit TCS for collections made under section 206C including sale of scrap during the month of August 2023, if any • Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of August 2023, if any
4	30.09.2023	Income tax	Filing of income  tax return for the Corporate assesses (or) Non Corporate assesses (Whose books of accounts are required to be audited U/s 44AB of IT act 1964 (or) working partner (of a firm whose books of accounts required to be audit ( in case of Assesses not having international or specified domestic transaction). (All Sasken Trusts Return have to be filed.) Due date of Filing Form 10B for exempted Institution E TDS return of the quarter ended June 2023.

CBDT issues corrigendum on amendment to valuation rules for accommodation perquisite

 We had earlier released Tax Alert dated 21 August 2023 to explain Notification No. 65/2023 dated 18 August 2023 [1] issued by Central Board of Direct Taxes (CBDT) which substituted the existing Rule 3(1) (old rule) of Income Tax Rules, 1962 with the new Rule 3(1) (new rule) providing for valuation rules for accommodation perquisite.

In general, while the new rule continues to be largely based on the percentage of salary of the employee, however, it has rationalized the valuation in respect of employer-owned accommodation and also ensures that the increase in salary of the employee does not result in an artificial rise in the value of the perquisite beyond the inflation level in the country by way of introducing an inflation-linked cap in determining the value of perquisite.

CBDT has now issued a Corrigendum dated 29 August 2023 to amend the above referred Notification in respect of inflation linked capping to clarify that it will apply to both employer-owned and employer-leased accommodation.

We have accordingly updated Tax Alert dated 21 August 2023 to incorporate the change brought about by the Corrigendum

Understand Article 7 of DTAA.

 Article 7 of Double Taxation Avoidance Agreements (DTAA) is a fundamental provision that addresses the taxation of business profits in cross-border transactions. While it serves as a cornerstone of international tax treaties, it's important to critically evaluate its strengths and limitations to understand its effectiveness in achieving its intended goals.

Form 1040

U.S. INDIVIDUAL INCOME TAX RETURN

A form, which needs to be filed by Individuals having incomes from different sources
To prepare such form certain basic questions need to ask client few of them are
1. Status of filling as the deduction is based on the status of individual
2. Dependents details (SSN, DOB & Relationship)
3. Now come to the income parts, (ask for supporting documents for income Received during the year)
• Ask whether they get any W2 (i.e. wages details Along with the taxes withheld )
• Details for other income (for interest Form 1099-INT ) even exempt interest need to be reported in form 1040
• Also ensure that client has any foreign accounts & trust if any then needs to report the same in FBAR
• Details with respect to income from capital gain (i.e. consolidated statements from broker : Form 1099-B)
• Details with respect to dividend income (form 1009-DIV) which shows details of qualified dividend (taxed at lower rate)
• With respect to CG Ensure the cost basis for cost not provided in form 1099-B
• Details with IRA Contribution (Form 5498)
• Even asked client whether any income received with respect to business or rental property (Financials for the same)
• Pension and Annuities
• Most Important is details and supporting documents with respect to deduction consider in Schedule A based on that it determined that whether itemized and standard deductions
• Inquire With respect to child and dependent care expenses incurred during the year


The best way to make one questioner for client ask them to revert into the so that you can get all your answers at one stretch and no more follow ups for supporting

just basic briefing of income in form 1040 .

source_ IRS

Sec 43B- expenses deductible only on actual payment:

A. As per Sec 43B of the Income Tax Act, certain expenses as indicated below are deductible only when actually paid by the assessee:

1. Taxes, Duties, and Fees: Any sum payable as tax, duty, cess, or fees by any name under any law.

2. Contributions to provident funds, superannuation funds, gratuity funds, or other welfare funds for employees.

3. Any sum payable as bonus and commission to an employee.

4. Any interest payable on loans or borrowings from public financial institutions, Central or State Government, or NBFC (applicable from assessment Year 2024-25) declared by the Central Government.

5. Any interest payable on loans or advances from scheduled banks or cooperative banks.

6. Any sum payable to an employee for unused leave.

7. Any sum payable to the Indian Railways for the use of assets.

8. Any amount paid late under section 15 of the Micro, Small and Medium Enterprises Development Act. (applicable from assessment Year 2024-25)

Some selected case laws on Sec 43B:
1. Full Bench of Hon. Supreme Court has held in the case of Checkmate Services P. Ltd. vs CIT 3614 (2022) (09) (SC) that belated deposit of employees’ contribution are not deductible under section 43B, if paid beyond the time prescribed under the relevant Act.

2. Hon Supreme Court in the case of M.M. Aqua Technologies Ltd. v CIT [2021] 129 taxmann 145 (SC), has held that issue of debentures against the outstanding interest liability as final discharge of liability would be treated as actual payment of interest and such amount need not to be disallowed under Section 43B.

3. Interest due on payment of Municipal Tax of property is not considered as tax, hence it will not be disallowed section 43B. (CIT vs. Orient Bewarages Ltd., (2000) 164CTR (Kolkata) 529.

4. Allahabad High Court has held, in the case of CIT vs. Sinyaovi Industries Ltd.,(2014) 111 DTR (Allahabad) 274 that interest on excise duty is extended liability and it will not be allowed and section 43b will apply.

5. Electricity duty is not falling within the preview of section 43B, hence if paid after due date, is an admissible expenses. (CIT vs. Urja Vikas Nigam Ltd. (2011)322 ITR 579(guj).

Penal provisions for not issuing E Invoice.

 It is a common error that a so called regular tax invoice has been issued but an E-invoice for the same has not been generated and the IRN has not been mentioned on the tax invoice. What is the severity for such non-compliance? Decoding the penalty provisions for such non-compliance below:

How your investment taxed?

A.     At the time of sale of investment.

Nature of Asset	Holding period  to become Long Term	Indexation available	Short Term Capital Gain Rate *	Long Term Capital Gain Rate*
Listed Equity preference shares	12 Months	No	15%	10%
Equity Arbitrage Fund / Equity ETF	12 Months	No	15%	10%
Equity oriented Mutual Fund (Equity more than 65%)	12 Months	No	15%	10%
Debt Fund (Non Equity less than 35%) purchase after 1-4-2023	NA	NA	Slab Rate	NA
Debt Fund (Non Equity less than 35%) purchase before 1-4-2023	36 Months	Yes	Slab Rate	20%
Mixed Fund (Non Equity greater than 35% but less than 65%)	36 Months	Yes	Slab Rate	20%
Market Linked Debentures (MLD)	NA	NA	Slab Rate	NA
NCD or listed Bond	12 Months	No	Slab Rate	10%
Non Listed Bond	36 Months	Yes	Slab Rate	20%
Tax Free Bond	36 Months	No	Slab Rate	10%
Fixed Maturity Plan (FMP)/Debt ETF  purchase after 1-4-2023.	NA	NA	Slab Rate	NA
Fixed Maturity Plan (FMP)/Debt ETF  purchase before 1-4-2023.	36 Months	Yes	Slab Rate	20%
Zero Coupon Bonds	12 Months	Yes	Slab Rate	20% with indexation or 10% without indexation
Immovable Property: Land, Building and House property, Unlisted shares of a company	24 Months	Yes	Slab Rate	20%
REITs (Listed)	12 Months	No	15%	10%

B.    Regular Income from Investment 

Nature of Income	Head	Tax Rate*
Dividend Income	IOS	Slab Rate
Interest Income	IOS	Slab Rate
Tax Free Bond Interest Income	IOS	Exempt

C.    Income from REITs

Nature of Income	Resident	Non Resident	SPV opted for New Regime	SPV opted for Old Regime
Dividend			Slab Rate	Exempt
Interest	Slab Rate	5%
Rent	Slab Rate	Slab Rate
Any other Income	Exempt	Exempt
Amortization of Debt/ repayment of Loan (FY 2023-24 onwards)	Slab Rate	Slab Rate

*  Plus applicable surcharge & cess.