The government has extended the due date of filing tax deducted at source (TDS) returns under GST laws for the Jan-Mar period till May 31, 2019. As per the Income Tax Department notification number 36/2019 dated April 12, 2019, the format to furnish the TDS statement for Form 24Q Quarter 4 has been revised. The new format is applicable with effect from May 12, 2019 onwards.
The Return Preparation Utility (RPU) supporting the new format as well as the File Validation utility (FVU) will be hosted and available for download on TIN website from May 12, 2019 onwards.
All the deductors are here by requested to use the appropriate file format as well as software to prepare and validate the statement before submitting at TIN FC.
There are many change in the file format for Form 24Q Quarter 4
As per the Income Tax Department notification 36/2019 dated April 12, 2019 the file format for Form 24Q Quarter 4 has been revised. The new format is applicable from May 12, 2019 Onwards.
Important Information regarding revised Form No. 24Q Annexure-II.
As per “CBDTs Notification 36/2019”, dated 12th April, 2019 the format of TDS Statement in Form No. 24Q, Annexure-II has been revised. The Notification shall come into force w.e.f. 12th May’2019.
The Form 16 and 24Q have been amended to make them more elaborative and informative. The same has been done to bring the Forms in parity with latest changes made in ITR Forms such as disclosure of deductions and exemptions. This will ensure that Form 16 shall be in conformity with the IT return forms making it easy for the taxpayers to file their Income tax returns.
Changes/ New requirements in Form No. 24Q Annexure-ll
Revised Form 24Q seeks more details on salary paid or credited during the year. Also furnishing of Lender’s PAN is mandatory in the cases where housing loan is taken from a person other than a Bank/ Financial Institution/ Employer. New format requires the tax deductors to furnish following additional information-
1. Detailed break-up for exempt Income u/s 10–
a. Travel concession or assistance u/s 10(5)
b. Death-cum-retirement gratuity u/s 10(10)
c. Commuted value of Pension u/s 10(10A)
d. Cash equivalent of leave salary encashment u/s 10(10AA)
e. House rent allowance under u/s 10(13A)
f. PAN of landlord, if exemption is claimed u/s 10(13A)
The high court of Telangana recently ordered that no individual or taxpayer will be getting input tax credit until unless he had filed the GST returns.Also, the court has said that in case he had missed the return filing he is liable to pay the penalty on the tax amount. This would impact the majority of dealers who have been using the ITC on inputs for the reduction in cash payments.As per the judgement of Justices V Ramasubramanian and P Keshava Rao, it said, “…until a return is filed as self-assessed, no entitlement to credit and no actual entry in the electronic credit ledger takes place. As a consequence, no payment can be made from out of such a credit entry.”
The company on which the case was being decided argued that the interest has to be calculated on the net tax liability and not on the total tax amount however the court supported the otherwise and held the tax department correct.As per a tax lawyer, “The ruling has very wide implication as almost all taxpayers, who delayed filing returns and have paid interest only on cash payment of tax and not on the GST amount set off by them through ITC. The issue will open a floodgate of litigation and demands of interest by GST officials are imminent. Even CAs while auditing Annual GST Returns, which have to be filed by June 30, may be required to point out short payment of interest due to delayed set-off.”
GST Department Planning New Tricks on Tax Evaders
Tax sleuths have planned a fresh crackdown on traders practicing tax evasion of Goods and Services Tax (GST) by pursuing new registration for their businesses without dismissing a prior one.Right and duties coexist simultaneously & where it is right, there is a duty to be fulfilled by the citizens. The Goods and Services Tax (GST) law gives the right to an individual to have separate registration on the same Permanent Account Number (PAN) in the same state. But people are not using this facility in fair fashion instead they are using the same to evade taxes which were due under earlier registration.
The Central Board of Indirect Taxes and Customs (CBIC) has given strict orders to the tax officers to carefully check and analyze the information like details of proprietor, director/members of managing committee of associations/board of trustees etc, furnished by an applicant in the fresh registration form in the context of any cancelled registration having same details. Recently, a huge number of registrations has been aborted by tax officers due to non-compliance.
Here are Nine changes in ITR forms 1 & 2 that you should know about while filing your return for FY19.
If you are holding shares in an unlisted company then, you are required to disclose the details of your holdings in ITR-2.The income tax return (ITR) forms for FY 2018-19 notified by the government are different from those used to file the previous year’s returns. Some of the changes in the forms have been done in keeping with the changes in income tax laws made in Budget 2018 for FY 2018-19 and onwards. Apart from that, there are other changes as well in the ITR forms which you should be careful about while filing your return for FY 2018-19.
Here are nine changes in ITR forms 1 & 2 that you should know about:
1. Online filing of ITR mandatory
In a departure from previous year, all individuals (except
for super senior citizens) will be required to file their ITRs electronically.
The ITR-1 for FY 2018-19 cannot be filed in paper format by the taxpayers
having income below Rs 5 lakh with no refund.Chartered Accountant, Naveen Wadhwa, DGM, says, “In the previous year, CBDT allowed two types of individuals to file their ITR in paper format. These individuals were super senior citizens whose age is 80 years or above and individuals having income below Rs 5 lakh with no refund. However, for FY 2018-19, only super senior citizens can now file ITR-1 or ITR-4 in paper form and others will have to file their ITR electronically.”
2. Complete details of buyer to whom you have sold property
If you have sold a property in FY 2018-19, then while filing ITR-2, you will be required to provide complete details of the buyer to whom you have sold the property. Wadhwa says, “The buyer details have to be provided irrespective whether the capital gains accrued are of short-term or long-term in nature. The details of buyer will have to be given if TDS is deducted by your buyer while making payment.”It is mandatory to deduct TDS if the sale value exceeds Rs 50 lakh. However, “If the sale value exceeds Rs 10 lakh but below Rs 50 lakh then deducting TDS is not mandatory but quoting of PAN of the buyer while filing ITR is mandatory for this year,” adds Wadhwa.
3. Property wise details of Rent arrears
“While filing ITR-1 or ITR-2 as applicable, if there are any rent arrears that are received by you in FY 2018-19 then you have to report them property wise as received,” says Wadhwa. Remember, if an individual has one house property which is let out during FY 2018-19, then the rent received is required to be reported in ITR-1.
For individuals with more than one house property, they are required to file their ITR using ITR-2. “ITR-1 & ITR-2 has introduced an additional row ‘Arrears/Unrealized Rent received during the year less 30%’. This row was not available in both the forms in the previous year,” adds Wadhwa.
4. Specifying the type of house property
While providing details of your one house property in ITR-1, you are required to specify whether the house is – ‘Self Occupied’, ‘Let-out’ or ‘Deemed Let-out.’ In the previous year’s ITR-1, there was no such option of ‘Deemed Let-out’ in ITR-1.
5. Investment details in unlisted companies
If you are holding shares in an unlisted company then, you are required to disclose the details of your holdings in ITR-2. The details required are extensive – name of the company, PAN of the company, number and cost of acquisition at the beginning of the year, number of shares, face value, issue price (or purchase price) and date of purchase of shares acquired during the year, number and sale consideration of shares transferred during the year, number and cost of acquisition of shares held at the end of the previous year.Wadhwa says, “Such information is being sought so as to get the footprints of transactions of purchase and sale of unlisted shares. It will also help the department to check whether income and net worth of a shareholder is in corroboration with the amount invested by him in an unlisted company. If it does not reconcile, the department can initiate the enquiry to verify if some unaccounted money is invested in an unlisted company.”
6. Reporting of salary details gets easier in ITR-1
This year providing details of your salary income will be easier as the details required are in sync with the information available in Form-16. In the last year, though taxpayers were required to provide the break-up of salary details, the information required was not in sync with information available in Form-16.
7. Full disclosure of interest income
Along with providing full break-up of salary income, taxpayers will be required to specify the full bifurcation details of the interest income or any other income received by them. Income from other sources head in ITR-1 has been updated to provide details of the source from where interest or any other income is received.
8. Residential status :
The new ITR-2 form asks individuals not only to specify the residential status as resident, resident but not ordinarily resident or non-resident, but also to provide additional information with respect to his residential status, such as, number of days of stay in India, jurisdiction of his residence and tax identification number in case he is a non-resident.”These details are being asked to check if a taxpayer has rightly determined his residential status in India which is entirely based on his number of days of stay in India. The Tax Identification Number will validate if a non-resident taxpayer is rightly claiming the DTAA benefit,” adds Wadhwa.
9. Mention of DIN number
If you are Director of a company, then you will be required to specify your DIN (Director Identification Number) in ITR-2 or 3 whichever is applicable. Along with this you will also be required to provide information – name of company, PAN, whether shares are listed or unlisted.
Wadhwa says, “The purpose of seeking DIN no. of
directors might be to identify the inactive directors whose qualifications and
taxable income does not justify him to remain on board. If a person has been a
director of a company but his income over the period had been negligent, it can
raise doubt on the purpose for which he was appointed as director in a
Forms for the GST audit report of the Financial Year 2017-18 have been issued. This form is for companies that do business more than 2 crore rupees annually.For the financial year 2017-18, companies with annual turnover of more than Rs 2 crore can start filling GST audit reports. For this, GST Network (GSTN) has made the form available on its portal. The last date for filing the audit report is June 30.The financial year 2017-18 was the first year of implementation of Goods and Services Tax (GST). The Ministry had notified the annual return form GSTR-9, GSTR-9A and GSTR-9C on December 31, 2018. The GST Council had extended the last date of filing of these forms from December 30 to 30 June.
GST Network has also made GSTR-9C offline available. It can fill the taxpayer and upload it to the portal. EY India’s tax partner Abhishek Jain said that the industry had been waiting for a long time to facilitate offline processing and filling of GSTR-9C online. He said, “Explanation of auditor’s digital signature, besides book-accounts, sending benefits / loss accounts etc, the companies should help in complying with its compliance.”
About the form
GSTR-9 is the annual return form for all the taxpayers registered under GST. GSTR-9A is for taxpayers who adopt a one-time tax plan. Whereas GST-9C is a maturity statement. Verification is done by chartered accountants or cost accountants. By the way taxpayers have to deposit it with an annual return whose business is more than Rs 2 crore in the financial year.
GST Revenue At Highest Level
Explain that revenue collection under GST has gone up from
15 percent to 1.06 lakh crore in March last year compared to the same period
last year. According to the finance ministry, GST revenue collection was Rs
1,06,577 crore in March, which is the highest monthly collection level ever
since GST was implemented. GST revenue collection in March last year was Rs
92,167 crore, compared to 15.6 per cent in the last month’s revenue collection.
Income tax assessees are set to come across certain changes in the income tax return (ITR) forms. The Income Tax Department has brought about certain changes in select ITR forms meant to be used for assessment year 2019-20. According to tax experts, some sections in the forms have been rationalised and reporting requirements increased. Individuals and businesses are required to file their income tax returns for the income earned in financial year 2018-19 using these forms: ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7. These seven forms – also known as ITR forms – were notified by the Income Tax Department earlier this month. (Also read: Quoting Aadhaar in ITR compulsory “unless specifically exempted”, says Income Tax Department). July 31 is the due date for filing income tax returns (ITR) for assessees not required to get their accounts audited.
Here are some of the key changes in the income tax forms applicable to individual Assessees:
While there are no changes with respect to reporting of income eligible for benefit under Section 80C of the Income Tax Act, cash and non-cash donations eligible for deduction under Section 80G/80GGA need to be reported, say tax experts. “The forms seek bifurcation between donation in cash and other mode for Section 80G deduction purposes,” said Amit Maheshwari, partner, Ashok Maheshwary & Associates LLP.
Income tax forms – changes applicable to company director.
Individuals serving as a director in a company can no longer file the
income tax return using Form ITR-1 or Form ITR-2. Such individuals will be
required to furnish details such as the company’s Permanent Account Number
(PAN) and Director Identification Number (DIN), and mention whether the shares
are listed or unlisted. Additionally, details on investments and transactions
undertaken in relation to such shares will also be required.
Changes with respect to agricultural income
“In case of taxpayers earning agricultural income exceeding Rs. 5
lakh, additional details of the agricultural land need to be provided such as name
of district, land area, whether land is owned or leased, whether the land is
irrigated or rain-fed,” added Mr Kapadia.
Changes with respect to unlisted company shares.
Income tax assesses will be required to furnish details of the investments held, acquired or transferred in unlisted equity shares during the financial year.”An individual/HUF (Hindu Undivided Family) holding unlisted shares needs to disclose name of the company, opening number of shares, cost, details of shares acquired & sold during the year and closing number of shares and cost,” said Gopal Bohra, partner, NA Shah Associates LLP.
Changes applicable to NRI’s
Individual taxpayers are now required to select the applicable
residential status rule based on the actual physical stay of the individual tax
payer, say experts.Overseas Citizens of India (OCI) and Persons of Indian Origin (PIO)
qualifying as non-resident are required to report the actual numbers of days of
stay in the country in the relevant financial year as well as preceding four
years, Mr Kapadia explains.
Also, individuals qualifying as NRI need to report the jurisdiction of residence and Taxpayer Identification Number, he adds.
Changes with respect to sale of capital assets (immovable property)
In case of sale of immovable property during financial year 2018-19, details such as name, PAN, percentage share, the value of sale and address of the buyer need to be furnished.
Restrictions on ITR-1 and ITR-4
Form ITR-1 – also known as “Sahaj” – cannot be used by an individual serving as director of a company, having investments in unlisted equity shares, or having income on which TDS (tax deducted at source) has been deducted in another person’s hands.
Form ITR-4 – or “Sugam” – cannot be used by individuals or HUFs non-resident, ordinarily resident, non-resident partnership firms, directors of companies or persons having investment in unlisted equity shares or having more than one house property.
The last few days of the financial year are crucial for settling many tasks related to GST. Deadline for multiple Compliance including joining the composition scheme from April 1, 2019, continuing zero-rated exports under the Letter of Undertaking, GST Returns before October 2018, Without Letting Fill Fees, Job Work ITC, GST TDS 31 March is. Apart from this, the traders have to take care of this timeframe to revive their income tax returns or to pay advance tax.The government had recently increased the turnover limit from Rs one crore to 1.5 crore for the composition scheme, which will be effective from 1st April, 2019. If a trader’s turnover is less than 1.5 crore in 2018-19 or is expected to live, then he will have to file the GST Form comp -2 online for the next financial year to work as a composition dealer till March 31, 2019. Those who have not filled the last GST returns till now, they can file GST-1 and 3B till October 2018 without the fees of 31 March. After this, the filing fee will be levied.
The deadline for March 31 for exporters is also important. GST Consultant told that exporters have to file aliases for exports without payment of IGST. The Elioti released for the year 2018-19 will expire by March 31 and the new aliooty will be released for the next financial year. So keep in mind the date. To claim input tax credit on job work, it will also have to fill ITC 04 by March 31. Since most of the major jobs have been processed for months, so far its filing has been very low and the government is raising the debt. Since October 2018, the returns of applicable GST TDS are also to be filled by March 31. In the states where GST has notified the new threshold limit, businessmen can also inform the department about estimating their turnover from April 1 to stay or stay in GST.
In the case of income tax, the traders will have
to do many compliances till March 31. In addition to returns and revised
returns of FY 2017-18, the revised returns of the financial year 2016-17 can
also be up to 31. In addition to Advance Tax or Donation Deadlines for the
financial year 2018-19, this is also the last date for linking the basis of
bank and PAN.
The Income Tax Department has commenced taking actions against unidentified /nameless property and black money. The Department has issued notices to 2000 people who have made cash transactions of more than Rs. 5 lakhs in the purchase of properties. The investigation on cash transactions of more than 20 thousand is also on the verge to begin.
Cash Transactions Not Exceeding Rupees 20 Thousands
The amendments were made in section 269SS of the Income Tax Act to curb black money, in the year 2015. According to the Central Board of Direct Taxes (CBDT), this amendment defines transactions of more than 20 thousand rupees in the purchase and sale of any kind of property, as illegal.
Income tax department will soon initiate the investigations on these transactions as well. For now, these transactions are on hold.
Provision of Penalty Equivalent to the Transaction Amount
According to CBDT, amendments introduced in the section 269SS of Income Tax ACT, after the 1st June 2015, binds the cash transactions of purchase/sale of property exceeding Rs 20,000 with the penalty of an equal amount under section 271D . That means Section 271D imposes a penalty of the same amount as the value of the property for the transactions which are defined as illegal as per the altered section of 269SS of income tax act.
As per new Finance Minister may consider One time GST Amnesty scheme. The Goods and Services Tax Council may consider One-time amnesty scheme to facilitate exit for ‘nil’ filers and non-filers. Talking about GST non filer numbers there around 25 lack NIL filer of which 2.5 lac approximately. Assesses have never filed GST Return.
As per the law, the person who is registered under GST has to file return anyhow i.e. in any form. Return must be filed by the registered person either monthly (normal supplier) or quarterly (supplier choosing composition scheme). Monthly return must be filed by an ISD (Input Service Distributor) and show the credit distributed details per month. The person who has to collect tax (TCS or Tax Collected at Source) and deduct tax (TDS or Tax Deducted at Source) have to file returns monthly showing the details of collected/deducted and other specified amount. Also, note that a non-resident taxable person has to file the return for the time period on no transaction.
In Amnesty Scheme Late Fee Norms for Defaulters Under GST
Any registered person who did not file the return has to pay the fine as the punishment in the form of late fee. If GSTR 3B is filed late then, the person must pay the late fee of Rs 50 per day i.e. in case of SGST and CGST (in case of any tax debt) Rs 25 per day and Rs 10 in each SGST and CGST (in case of Nil tax debt) i.e. Rs 20 per day subject to a maximum penalty of INR 5,000 from the given due date to the actual date when the returns are finally filed. It is said that the Amnesty scheme may provide relief from such fees.
Under GST, 1.16 crore people are registered as of now including the 64 lakh people who moved from the old system. Before GST reign, VAT/ST was the different pieces for registration in the State, and was low as Rs 1 lakh which could reach up to Rs 20 lakh: the thresholds for Central Excise was ₹1.5 crore and Service Tax was ₹10 lakh. As per the law, all such people were shifted to GST.
Singh said “Traditionally, amnesty schemes have generally resulted in increased compliance and tax revenues. However, the timing of the scheme, immunity from penal consequences and commitment to not initiate any investigations for those who participate in such scheme are some critical aspects on which the success or failure of the scheme hinges”.
As per the notification, the due dates for the furnishing of FORM GSTR-1 for the taxpayers having an aggregate turnover of more than Rs. 1.5 crores for the months of April, May and June 2019 has been prescribed.
It was announced that the extension of GST registration limit i.e. up to 40 lakhs will be applicable form coming 1st April 2019.
Also, the notification stated that the composition scheme for business up to 1.5 crores by the business is now fixed to 1st April 2019. However, the government also notified prescribed for other 2 GSTR forms also including GSTR 1 and GSTR 3B.
While in another notification, the due dates for the furnishing of FORM GSTR-3B for the months of April, May and June 2019 also has been prescribed.
Apart from the due dates, there was a provision for the service providers and the suppliers of both goods and services having turnover up to INR 50 lakhs to become eligible for composition scheme under GST and have to pay 6 per cent GST starting from next financial year. As per the official statement, “There would be two threshold limits for exemption from registration and payment of GST for the Suppliers of Goods i.e. Rs 40 lakhs and Rs 20 lakhs. States would have an option to decide about one of the limits, The Threshold for Registration for service providers would continue to be Rs 20 lakh and in case of Special Category States Rs 10 lakhs”