'The Indian Income-tax World, as we know it today, has changed forever - Anon'
The Hon'ble Prime Minister, Shri Narendra Modi launched the platform for "Transparent Taxation - Honoring the Honest" on August 13, 2020 via Video Conferencing. While launching the platform, three major milestone announcements were made, which are faceless assessments, faceless appeals and tax payer's charter. The focus behind this is on making the tax system people-centric and public friendly.
In this TaxAlert, we seek to declutter these high-impact and foundational changes and explain the salient features of these developments in a lucid manner. We trust that you will find the same to be a useful read.
The due date for filing of ITRs for FY 2019-20 has been extended to November 30, 2020 for all the taxpayers due to the pandemic. The forms for filing ITR for FY 2019-20 have been notified.
The notified forms contain comprehensive details of the taxpayers. In this TaxAlert, we have impressed about the applicability of each ITR to the taxpayer and further brought out the key highlights of the new forms.
CBDT on July 13, 2020 notified the one-time relaxation for verification of ITR for 5 years i.e. Financial Year 2014-15 to 2018-19 relevant to the Assessment Year 2015-16 to 2019-20, which are pending due to non-filing of ITR- V form or e-verification of ITR - V and processing of such returns. Such verification process must be completed by 30.09.2020 so that ITR can be processed.
In view of the challenges faced by the taxpayers in meeting the statutory and regulatory compliance requirements due to the outbreak of COVID-19, the Government in continuation with the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance 2 of 2020 dated 31st March, 2020 and Aatmanirbhar Package, had come up with the further extensions vide Notification on Taxation and Other Laws dated 24th June, 2020.
The provisions of Search and Seizure first made its entry into the Income Tax, Act in 1956. Finance Act, 1964 totally substitutes Section 132, which deals with the Search and Seizure provisions. Survey, Search and Seizure are the two weapons in the armory of the revenue department to detect tax evasion. Search and survey are essential processes by which evidence is gathered to be used to determine correct tax liability of an assessee.
The power under Survey, Search and Seizure has been given to the tax authorities to unearth any concealed income or valuables and to keep check on tax evasion practices and thereby mitigate the generation of black money.
The Income Tax Department's "Search and Survey" operations, more commonly known as 'raids', has always been one of the worst nightmares of illegitimate businessman and individuals. They fear that once caught, they will be liable to not only heavy tax and penalty payments but will also have prosecution implications. Therefore, it is important to clearly understand the provisions of "Search and Seizure" to avoid any panic and misconduct during the operations.
In this insight, we have sought to update you about the provisions of Survey, Search and Seizure and highlight the major differences between Search and Survey.
Hon’ble Indian Finance Minister had talked about rationalization of the Form 26AS ('Annual Tax Statement') in the Union Budget 2020 by ‘making it more comprehensive and covering multiple information’ available with the Income-tax Department. Accordingly, the new Form 26AS has been notified vide Notification No. 30/2020 dated 28.05.2020 to replace the age-old Form 26AS. The new Form 26AS is now rechristened as 'Annual Information Statement' & has been made effective from June 1, 2020.
In its new avatar, the Form has been redesigned to contain certain information relating to status of demand / refund and pending / completed proceedings, apart from Specified Financial Transactions undertaken by a taxpayer in a particular financial year that has to be mentioned in the Income-tax returns (ITR) and payment of taxes.
In this TaxAlert, we have sought to update you about the contents of the new Form 26AS and highlight the changes made therein. We trust that you will find the same to be a useful read.
As you all would recollect, the Union Budget which was presented on 1st February, 2020, had its own fair share of important, far-reaching proposals such as changes in residency clause and expansion in the ambit of TCS provisions, etc. After going through the due Parliamentary process, the Finance Bill, 2020 has now become an Act. During this journey, there are some amendments / changes from the original announcements. In this TaxAlert, we have highlighted what those key amendments are as compared to the announcements made in the Union Budget.
While on one hand the novel COVID 19 is spreading at a lightning speed, the entire world is making fervid efforts to overcome this pandemic. The Indian Government has taken some strong steps to fight with this pandemic. A lesson learnt from the experiences and trends of other nations suffering severely from this disease, is strongly implemented by way of measures at all levels, viz, announcement of complete lock-down across the country, ban on international and domestic flights during the lock-down period and bold economic decisions to provide relief to the citizens. In line of this action plan of the Government of India, the Hon’ble Finance Minister, Mrs. Nirmala Sitaraman announced ‘PM Gareeb Kalyan Scheme’ on March 26, 2020. This article contains key highlights of the said scheme to apprise the readers of the latest economic developments in the country, in spite of the panicking situation.
A day after Modi govt. began its economy rescue in right earnest with INR 1.70 lakh crore coronavirus counter, the Reserve Bank of India joined the big fight today with a host of measures aimed at minimising the damage from Covid-19. Today RBI has taken giant steps to safeguard our economy from the impact of the Coronavirus. This is an updated guide on the measures taken by RBI to improve liquidity, reduce cost of funds, help middle class and businesses. These measures come just hours after Moody's Investors Service cut India's growth forecasts for 2020 calendar year to 2.5% from 5.3%.
Simmering of compliance burden - The rapid splurge of COVID-19 has made it difficult for the businesses to run their operations. After the announcement of historic lockdown of 21 days announced by the Hon'ble Prime Minister, the business operations came to entire standstill. Looking at this panicking situation accross the country, the Hon'ble Finance Minister announced various compliance relaxation provisions under various legislations like Income-tax, GST, Customs and Excise, Company Law and IBC."