⚫India’s economic recovery, will be faster in the next three quarters even if a third wave hits the country. It is mainly due to the intensification of the vaccination drive and several economic parameters returning to pre-Covid levels.
⚫The Govt will clear all arrears under various export incentive schemes to help exporters address their liquidity concerns. In pursuit of this, it will release Rs 56,027 crore this fiscal year.
⚫Record SIP numbers bring cheer to mutual fund industry. Monthly SIP book nears Rs 10,000 cr, new SIP registration & AUM hit record highs.
⚫All eyes on Central Bank, IOB, after UCO exits PCA. Central Bank in its annual report for 2020-21 said it was complying with the PCA framework norms meticulously.
⚫India adds 43,263 cases inn 24 hours, Kerala contributes 30196.
🌑China's app ban proves to be a jackpot for Indian mobile apps. Domestic publishers have filled the vacuum, increasing market share.
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👉🏻Responsibility of Govt to design convenient tax system so that individuals can budget & plan - SC
(SC said that in a taxation regime there is no room for presumption and it is the responsibility of the government to design a tax system which is convenient and simple so that an individual or a corporate can budget and plan)
👇🏻 👇🏻 👇🏻
https://bit.ly/3l3ZJM4
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CBDT extends due dates for filing of Income Tax Returns and various reports of audit for Assessment Year 2021-22.
The due date of furnishing of Return of Income for the Assessment Year 2021-22, which was 31st July, 2021 under sub-section (1) of section 139 of the Act, as extended to 30th September, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 31st December, 2021;
The due date of furnishing of Report of Audit under any provision of the Act for the Previous Year 2020-21, which is 30th September, 2021, as extended to 31st October, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 15th January, 2022;
The due date of furnishing Report from an Accountant by persons entering into international transaction or specified domestic transaction under section 92E of the Act for the Previous Year 2020-21, which is 31st October, 2021, as extended to 30th November, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 31st January, 2022;
The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 31st October, 2021 under sub-section (1) of section 139 of the Act, as extended to 30th November, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 15th February, 2022;
The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 30th November, 2021 under sub-section (1) of section 139 of the Act, as extended to 31st December, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 28th February, 2022;
The due date of furnishing of belated/revised Return of Income for the Assessment Year 2021-22, which is 31st December, 2021 under sub-section (4)/sub-section (5) of section 139 of the Act, as extended to 31st January, 2022, vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 31st March, 2022;
It is also clarified that the extension of the dates as referred to in clauses (9), (12) and (13) of Circular No.9/2021 dated 20.05.2021 and in clauses (1), (4) and (5) above shall not apply to Explanation 1 to section 234A of the Act, in cases where the amount of tax on the total income as reduced by the amount as specified in clauses (i) to (vi) of sub-section (1) of that section exceeds rupees one lakh. Further, in case of an individual resident in India referred to in sub-section (2) of section 207 of the Act, the tax paid by him under section 140A of the Act within the due date (without extension under Circular No.9/2021 dated 20.05.2021 and as above) provided in that Act, shall be deemed to be the advance tax
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🎂1) Although due date of ITR extended but Interest U/s 234A shall apply if total tax payable is more than Rs. 1 lakhs
🍒 2) Due date of holding AGM by Companies for FY 2020-21 is still 30th Sept. 2021, so plan your schedule accordingly. Although option to do AGM with shorter notice with 95% members approval still available.
🌴 3) Please keep in mind the requirements of Generating UDIN for signing Financial Statement of the Companies.
🍇 4) Last date to pay Annual Membership/COP fees of ICAI is 30th September, 2021.
🍎 5) Today Tax Audit utility for A Y. 2021-22 has been available at Income tax portal.
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⚫GST Council may take up proposal for cutting rate on steel scrap to 5%. The GST rate on other kinds of scrap has already been reduced from 18% to 5%.
⚫India may continue to face chip crunch for mobile devices for 6 more months. This will hit the affordable 4G segment phones particularly hard as they use a lot of low-priced high nanometer chips which are in even more short supply.
⚫A flood of IPOs has helped investment bankers pocket record fees in 2021. The fees earned from IPOs so far this year stand at Rs 1013 crore, the data from Refinitiv shows.
⚫13 auto firms have been in talks with govt for setting up business in India. Fresh investments may cross $4 bn.
🌑To facilitate strategic disinvestment, the finance ministry has decided to allow the private sector company which takes over a public sector company to set off losses of previous years for the purpose of income tax subject to conditions.
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CBDT issues clarification regarding carry forward of losses in case of change in shareholding due to strategic disinvestment
👉Finance Act, 2021 has amended section 72A of the Income-tax Act, 1961 (the Act) to inter alia provide that in case of an amalgamation of a public sector company (PSU) which ceases to be a PSU (erstwhile public sector company), as part of strategic disinvestment, with one or more company or companies, then, subject to the conditions laid therein, the accumulated loss and the unabsorbed depreciation of the amalgamating company shall be deemed to be the loss, or as the case may be, allowance for unabsorbed depreciation of the amalgamated company for the previous year in which the amalgamation was effected.
👉In order to facilitate the strategic disinvestment, it has been decided that Section 79 of the Income-tax Act, 1961, shall not apply to an erstwhile public sector company which has become so as a result of strategic disinvestment. Accordingly, loss incurred in any previous year prior to, and including, the previous year of strategic disinvestment shall be carried forward and set off by the erstwhile public sector company. The above relaxation shall cease to apply from the previous year in which the company, that was the ultimate holding company of such erstwhile public sector company immediately after completion of the strategic disinvestment, ceases to hold, directly or through its subsidiary or subsidiaries, fifty-one per cent of the voting power of the erstwhile public sector company.
👉The term “erstwhile public sector company” and “strategic disinvestment” shall have the meaning in Explanation to clause (d) of sub-section (1) of Section 72A of the Income-tax Act, 1961.
👉Necessary legislative amendments for the above decision shall be proposed in due course of time.
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🔮 Ethics of the Day🕵🏻
🏵️ FAQ : Whether a Chartered Accountant will be deemed to be guilty of professional misconduct if he accepts his appointment as an auditor immediately after intimating his appointment over the phone to the previous auditor?
👉 Ans :Yes,the member would be held guilty of professional misconduct for the following reasons: (a) That he had failed to communicate with the retiring auditor in writing; and (b) That he did not wait for a reasonable length of time for a reply to be received from him.
🏵️ FAQ: Whether a Chartered Accountant can accept an appointment as auditor of a company without first ascertaining from it whether the requirements of the Companies Act, in respect of such appointment have been duly complied with?
👉 Ans :No, as per Clause (9) of Part I of the First Schedule to the Act, a Chartered Accountant in practice shall be deemed to be guilty of professional misconduct if he accepts an appointment as auditor of a company without first ascertaining from it whether the requirements of Section 225 of the Companies Act, 1956 (sections 139 and 140 of Companies Act, 2013) in respect of such appointment have been duly complied with. In this regard, the Council has laid down detailed guidelines that are appearing in Paragraph 2.14.1.9(ii) to 2.14.1.9(xxxix) under Clause (9) of Part I of the First Schedule to the Act, appearing in Volume II of the Code of Ethics.
🏵️ FAQ: Whether a statutory auditor of a company can be appointed in the adjourned meeting in place of existing statutory auditor where no special notice for removal or replacement of the retiring auditor is received at the time of the original meeting?
👉 Ans :No, if any annual general meeting is adjourned without appointing an auditor, no special notice for removal or replacement of the retiring auditor received after the adjournment can be taken note of and acted upon by the Company, since in terms of Section 115 of the Companies Act, 2013, special notice should be given to the Company at least fourteen clear days before the meeting in which the subject matter of the notice is to be considered. The meeting contemplated in Section 115 undoubtedly is the original meeting. Where at any annual general meeting, no auditor is appointed or re-appointed, the existing auditor shall continue to be the auditor of the company mentioned in Section 139.
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Income tax department said a number of technical issues on the new ITR portal are being progressively addressed and 1.19 crore ITRs for 2020-21 fiscal year have been filed so far. the I-T department said over 8.83 crore unique taxpayers have logged into the portal till September 7, 2021 with a daily average of over 15.55 lakh in September.
New taxpayers to update Bank Details in 45 days of the first login through Non-core amendment. Functionality to check status introduced on GST portal.
Delhi High Court Ruling Set-aside Assessment Order in Violation of Section 144B of the Income Tax Act. Case Name : Pooja Singla Builders And Engineers Private Limited Vs National Faceless Assessment Centre & Ors (Delhi High Court). Appeal Number : W.P.(C) 9651/2021 & CM APPLs. 29810-11/2021. Date of Judgement/Order : 06/09/2021
GST compensation has turned out to be a significant portion of many states’ overall revenue receipts over the recent years. Such compensation was meant to be provided for a period of five years after the transition to the regime, and ends on June 30, 2022.
Reserve Bank Governor said the stressed assets situation "looks manageable" as the stock of gross non-performing assets (NPAs) remained stable even after the second wave of pandemic. The banking system's gross NPAs were at 7.5 per cent while the same for non-bank lenders were even lower.
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👉🏻HC stays order related to levy of GST on flat, villa maintenance charges
(Flat or villa owners paying more than ₹7,500 a month to their resident welfare associations towards maintenance charges will now have to pay Goods and Services Tax (GST) at the rate of 18% for the entire contribution since a Division Bench of the Madras High Court on Thursday stayed a single judge's order.)
👇🏻👇🏻 👇🏻
https://bit.ly/3k1x4Ib
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🔮 Ethics of the Day🕵🏻
🏵️ FAQ : Whether a member in practice/ Firm of Chartered Accountants is permitted to use logo on letter-heads, stationery, etc.?
👉 Ans :No,the use of logo/monogram of any kind/form/style/design/colour etc. whatsoever on any display material or media e.g. paper stationery, documents, visiting cards, magnetic devices, internet, signboard by the members in practice and/or a firm of Chartered Accountants, is prohibited. Use/printing of member/firm name in any other manner tantamounting to logo/monogram is also prohibited. However, a common CA logo has been allowed to the members, provided it is used in the correct manner within terms of the Council guidelines.
🏵️ FAQ: Whether members of the Institute can use common CA logo?
👉 Ans :Yes, the common CA logo can be used by all members, whether in practice or not. Encapsulating the current beliefs, attitudes and values of the profession, the CA logo seeks to enhance the identity of the members. The logo consists of the letters ‘CA’ with a tick mark (upside down) inside a rounded rectangle with white background.
🏵️ FAQ: Whether a member may put CA Logo on his website on the same background colour as that of the website?
👉 Ans :As per Logo Guidelines issued by ICAI, in the CA logo, the background colour of Logo has to be white. It is to be complied with accordingly, irrespective of the background colour of website.
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⚫India's retail inflation eases to four-month low of 5.3% in August from 5.59% in the previous month, led by subdued prices of food articles and a high base effect.
⚫GST Council meet on Friday: Profiteering cases likely to go to CCI. The Council will also discuss bringing petroleum products within the GST ambit.
⚫IRDAI allowed insurers to continue selling and renewing short-term Covid specific health insurance policies till March 2022.
⚫India administered 75 million Covid-19 vaccine doses since the launch of a nationwide campaign.
🌑SEBI penalises 2 Videocon promoter cos for violating insider trading norms.
🌑About 700 buildings located in north Delhi were declared as dangerous structures in a pre-monsoon survey by the area's civic body.
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🔮 Ethics of the Day🕵🏻
🏵️ FAQ : Who is “previous auditor” for the purposes of communication to be made in terms of clause (8) of Part I of First Schedule to the Act?
👉 Ans :The term “previous auditor” as per Council guidelines mentioned in Paragraph 2.14.1.8(xvii) under Clause (8) of Part I of First Schedule to the Act, appearing in Volume II of the Code of Ethics, refers to the immediately preceding auditor who held the same or similar assignment comprising same/ similar scope of work.
🏵️ FAQ: Whether a Chartered Accountant in practice can accept audit in case the audit fee of the previous auditor remains unpaid?
👉 Ans :No, in case the undisputed audit fees for carrying out the statutory audit under the Companies Act, 2013 or various other statutes have not been paid, the incoming auditor should not accept the appointment unless such fees are paid. In respect of other dues, the incoming auditor should in appropriate circumstances use his influence in favour of his predecessor to have the dispute as regards the fees settled.The Council has taken the view that the provisions of audit fee made in accounts signed by both- the auditor and the auditee along with other expenses, if any, incurred by the auditor in connection with the audit, shall be considered as 'undisputed' audit fees. In this connection, attention of members is invited to the Council General Guidelines, 2008.
🏵️ FAQ: Whether posting of a letter under “Certificate of Posting” is sufficient to establish communication with retiring auditor?
👉 Ans :No, a mere posting of a letter “Under Certificate of Posting” is not sufficient to establish effective communication with the retiring auditor unless there is some evidence to show that the letter has in fact reached the person communicated with. Members should therefore communicate with a retiring auditor in such a manner as to retain in their hands positive evidence of the delivery of the communication to the addressee. In the opinion of the Council, the following would in the normal course provide such evidence:- (a) Communication by a letter sent through “Registered Acknowledgement due”, or (b) By hand against a written acknowledgement, or (c) Acknowledgement of the communication from retiring auditor’s vide email address registered with the Institute or his last known official email address , or (d) Unique Identification Number (UDIN) generated on UDIN portal (subject to separate guidelines to be issued by the Council in this regard)
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🍎 To claim deduction of interest under section 24(b) of the Act, possession of property is not mandatory – ITAT bench of Mumbai held in the case of Abeezar Faizullabhoy v. CIT [ITA No.4831/MUM/2019]
🌴 Facts and findings: The Assessee claimed deduction of interest pertained to the funds which were borrowed by him for purchasing a residential property, however, the Assessee had not taken possession of the property. The AO disallowed the claim for deduction of interest. The CIT-A held that in the absence of any control/domain over the property, the Assessee would not be in receipt of any income from the same, therefore, allowing deduction under Sec. 24(b) qua the said property would be beyond comprehension.
🍒 The ITAT bench of Mumbai held that the Assessee shall be entitled to claim deduction of any interest payable on capital borrowed by him for acquiring, constructing, repairing, renewing or reconstructing a property for claiming deduction of interest under section 24(b) of the Act and there is neither any precondition nor any eligibility criteria prescribed that the Assessee should have taken possession of property so purchased or acquired by him.
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⚫PM said the central Govt was working on a road map to transform India’s image from that of a defence hardware importer to an exporting country.
⚫Rolls-Royce and Hindustan Aeronautics Limited signed a “Make in India” agreement to manufacture parts for Rolls-Royce’s Adour engines that will support the UK co’s international defence customer base.
⚫India's annual wholesale price inflation rose to 11.39% in August from the previous month's 11.16%, mainly due to increases in the cost of fuel and manufactured items.
⚫GST Council may deliver blow to food delivery operators Swiggy, Zomato. Many restaurants are not depositing GST, while some are not even registered.
⚫Apple Inc unveiled a new iPhone 13 and 13 Mini with brighter screens to entice customers into 5G plans, while also announcing updates to its iPads and watches.
🌑A study of 614 fully vaccinated health workers in India found a "significant" drop in their Covid-fighting antibodies within four months of the first shot. The findings could help the govt decide whether to provide booster doses as some Western countries have done.
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👉NOTIFICATION
New Delhi, the 13th September, 2021
👉G.S.R. 627(E).—In exercise of the powers conferred by second proviso to clause (i) sub-section
(1) of section 142 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of
Direct Taxes hereby makes the following rules further to amend Income-tax Rules, 1962, namely:-
1. Short title and commencement.- (1) These rules may be called the Income-tax (29th Amendment)
Rules, 2021.
(2) They shall come into force from the date of its publication in the Official Gazette.
2. In the Income-tax Rules, 1962, after rule 12E, the following rule shall be inserted, namely:-
“12F. Prescribed income- tax authority under second proviso to clause (i) of sub-section (1) of section
142.- The prescribed income-tax authority under second proviso to clause (i) of sub-section (1) of section
142 shall be an income-tax authority not below the rank of Income-tax Officer who has been authorised by
the Central Board of Direct Taxes to act as such authority for the purposes of that clause.”.
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🔮 Ethics of the Day🕵🏻
🏵️ FAQ : Whether a Chartered Accountant can accept appointment as an auditor after sending communication to the previous auditor through registered post without acknowledgment due?
👉 Ans :No, a Chartered Accountant cannot accept an appointment as an auditor after sending communication to the previous auditor through registered post without acknowledgment due, as this may tantamount to professional misconduct under clause (8) of Part I of First Schedule to the Act.
🏵️ FAQ: Whether communication with the previous auditor, as contemplated under Clause (8) of Part-I of the First Schedule to the Act, is permissible vide messaging application/sms?
👉 Ans : No, communication vide Messaging application/ sms is not permissible as an evidence of communication being sent , as required under Clause (8) of Part-I of the First Schedule to the Act.
🏵️ FAQ: What is the intention behind communicating with the retiring auditor?
👉 Ans :As per Council directions under Paragraph 2.14.1.8(i) under Clause (8) of Part-I of the First Schedule to the Act, appearing in Volume II of the Code of Ethics, professional courtesy alone is not the major reason for requiring a member to communicate with the existing accountant. The underlying objective is that the member may have an opportunity to know the reasons for the change in order to be able to safeguard his own interest, the legitimate interest of the public and the independence of the existing accountant. When making the enquiry from the retiring auditor, the one proposed to be appointed or already appointed should primarily find out whether there are any professional or other reasons why he should not accept the appointment.
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CBDT allows taxpayers an opportunity to file application for settlement
👉The Finance Act, 2021 has amended the provisions of the Income-tax Act, 1961 (“the Act”) to inter alia provide that the Income-tax Settlement Commission (“ITSC”) shall cease to operate with effect from 01.02.2021. Further, it has also been provided that no application for settlement can be filed on or after 01.02.2021, which was the date on which the Finance Bill, 2021 was laid before the Lok Sabha. In order to dispose off the pending settlement applications as on 31.01.2021, the Central Government has constituted Interim Board for Settlement (hereinafter referred to as the “Interim Board”), vide Notification no. 91 of 2021 dated 10.08.2021. The taxpayers, in the pending cases, have the option to withdraw their applications within the specified time and intimate the Assessing Officer about such withdrawal.
👉It has been represented that a number of taxpayers were in advanced stages of filing their application for settlement before the ITSC as on 01.02.2021. Further, some taxpayers have approached High Courts requesting that their applications for settlement may be accepted. In some cases, the Hon’ble High Courts have given interim relief and directed acceptance of applications of settlement even after 01.02.2021. This has resulted in uncertainty and protracted litigation.
👉In order to provide relief to the taxpayers who were eligible to file application as on 31.01.2021, but could not file the same due to cessation of ITSC vide Finance Act, 2021, it has been decided that applications for settlement can be filed by the taxpayers by 30th September, 2021 before the Interim Board if the following conditions are satisfied:-
👉The assessee was eligible to file application for settlement on 31.01.2021 for the assessment years for which the application is sought to be filed (relevant assessment years); and
all the relevant assessment proceedings of the assessee are pending as on the date of filing the application for settlement.
👉Such applications, subject to their validity, shall be deemed to be “pending applications” under clause (eb) of section 245A of the Act and shall be disposed of by the Interim Board as per the provisions of the Act.
👉It is clarified that taxpayers who have filed such applications shall not have the option to withdraw such applications as per the provisions of section 245M of the Act. Further, the taxpayers who have already filed application for settlement on or after 01.02.2021 as per the direction of the various High Courts and who are otherwise eligible to file such application, as per para 3 above, on the date of filing of the said application shall not be required to file such application again.
👉Legislative amendments in this regard shall be proposed in due course.
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Delhi High Court quashes asstt order passed without issuing show cause notice/ draft asstt order in faceless asstt scheme.
Friends , High Courts are very particular on the principle of natural justice i.e giving fair opportunity to assessee to represent its case. Further AO is also duty bound to strictly follow the elaborate procedure prescribed for faceless scheme of Assessment under Section 144B. In view of the procedure prescribed under this section , please make sure to meticulously reply all the questions raised by AO with supporting evidences. The reply be detailed, self contained and like a spoon feeding to a child so that the reader is able to understand what you have written. If the AO is still not satisfied with your reply , he has to issue a show cause notice/ draft assessment order proposing the additions and reasoning for such additions. In response to such show cause notice / draft assessment order make sure to rebut each and every allegation stated in show cause/ draft assessment order with the reasoning why the proposed additions are incorrect. This reply should also be self contained with all documents / evidences attached, may be at the cost of repetition with suitably indexed and page numbered . The reply should give refrence to the page no of the relevant evidences/ documents .
Also & most importantly you must ask for a hearing through Video Conference (VC). AO will be duty bound to give VC hearing and hear you. Put your point and explain your issue which AO is not able to understand by reading your written submissions. If need be you can show (and later submit ) further evidences during VC hearing to support your case.
In case AO doesn’t give you VC hearing after you have asked for in writing and on portal, the order will be liable to be quashed . On 30th September, 2021 assessment for A.Y. 2018-19 are getting time barred. So be alert and prompt in replying/ responding to any letter/ notice from AO as suggested above.
Last but not the least please do read section 144B leisurely. This will help in handling faceless Assessments.
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🌺 Education cess incurred by assessee was an allowable deduction under section 37(1) – ITAT bench of Delhi held in the case of Metropolis Healthcare Ltd. Vs. DCIT [ITA No. 1546 & 1547/DEL/2018]
🌴 Findings: The ITAT Bench of Delhi recorded the findings that the issue of deduction of education cess as an allowable deduction which is covered in favour of the Assessee by the decision of the Hon’ble Bombay High Court in the case of Sesa Goa Ltd. Vs. JCIT [423 ITR 426] and therefore directed the learned assessing officer to grant the deduction of the same.
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As September is the last chance to make compliance under various rules and regulations under the Goods and Service Tax Act in regard to FY 2020-21 so caution should be taken in relation to Inward supply and outward before the filing of GST Return for the month of Sept 2021 on following 7 Key Aspects.
Input Tax Credit (ITC) Related
1. Availment of Input Tax Credit for F.Y 2020-21: As per Section 16(4), a registered person shall not be entitled to take ITC in respect of any invoice or debit note for the supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of the financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier. Therefore, if any ITC in relation to any invoice/debit note pertaining to F.Y 2020-21 has not been claimed by the taxpayer then the same should be claimed in the month of Sept-2021.
2. Reconciliation of ITC appearing in GSTR-2A/ 2B with Inward Register: Input tax credit appearing in GSTR-2A/2B but not booked in purchase register should be identified and reconciled accordingly or in case the input tax credit has been availed in books of accounts but not reflected in GSTR-2A/2B should be reconciled and follow up for the same may be undertaken with the supplier so that it is reflected in GSTR-2A/2B. Also, the taxpayer shall ensure compliance with the limits specified under 36(4) for claiming ITC.
3. Apportionment of ITC as per Rule 42 & 43: In case the taxpayer is engaged in exempt supply and taxable supply, input tax credit availed is required to be reversed in a proportion of exempt supply to total turnover under rules 42 & 43 while filing GSTR-3B. Such reversal shall be calculated finally for the financial year before the due date for furnishing of the return for the month of September following the end of the financial year to which such credit relates. However, if reversal made in GSTR-3B is short/excess then the same shall be reversed/claimed respectively.
4. Reversal of ITC as per Rule 37 (Non Payment of Consideration within 180 days): A registered person, who has availed of an input tax credit on inward supply, but fails to pay to the supplier thereof, the amount of value not paid and the amount of input tax credit availed of proportionate to such amount not paid to the supplier in immediately following the period of 180 days from the date of the issue of the invoice needs to be reversed. Accordingly, the taxpayer should ensure whether the payment in respect of all the purchases made up to 31st March 2021 has been made to the supplier.
*Outward Supply Related*
5. Reconciliation of Outward Supply as per books of Accounts and GSTR-3B filed for the FY 2020-21: The taxpayer should reconcile the outward supply as per books of accounts and filed GSTR-3B so that any modification/rectification can be done till Sept-2021 i.e. if any sales have been short reported, not reported or excess reported as the case may be then the same shall be reported in the return for the month of Sept-21.
6. Amendment in GSTR-1: If any amendment is to be done in relation to outward supply then such amendment can be done in Sept-21. For e.g. In case any B2B supply has been reported as B2C then the same can be amended in the return of Sept-21.
7. Issuance of Credit Notes: As per Sec 34(2) of the CGST Act, Credit notes pertaining to invoices issued in F.Y.2020-21 cannot be issued after filing the return for the month of Sept-2021. Therefore, any credit note for FY 2020-21 should be issued by the month of Sept 2021.
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⚫The Union Cabinet approved the production linked incentive scheme for textiles for a budgetary outlay of Rs 10,683 crore to boost domestic manufacturing of man-made fibres, garments, and technical textiles.
⚫Equity mutual funds attracted a little over Rs 8,666 crore in August, making it the sixth consecutive monthly net inflow, on staggering investment in flexi-cap category.
⚫The Union Cabinet Committee on Security cleared the acquisition of 56 C-295MW medium transport aircraft from Airbus Defence and Space, Spain, in a deal worth $2.5-3 billion.
⚫Senior citizens above 75 years can avoid filing ITR from next year. Instead, they will just have to make a declaration in Form 12BBA to their bank, which will deduct TDS.
⚫Hit by GST recovery notices and summons, industry calls for help. GST authorities are issuing notices containing denial of input tax credit and in many cases they are blocking the entire input tax credit, even if only one vendor fails to deposit GST.
🌑FPIs raise a storm over T+1 settlement cycle. Sebi introduced an optional T+1 settlement cycle for the markets, with effect from January 1.
⚫No visits to Ganesh pandals in Maharashtra, only online darshan allowed.
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🔮 Ethics of the Day🕵🏻
🏵️ FAQ : What should be the sequence /order of designations, while a member also uses the designation ‘Dr.’ along with ‘CA’?
👉 Ans :The member is free to use the designation ‘Dr.’ along with ‘CA’ in whichever sequence/order he wants to.
🏵️ FAQ: Which designation(s) can be mentioned by a member in practice empanelled as Insolvency Professional on his visiting cards, letter heads and other communication?
👉 Ans :A member in practice empanelled as Insolvency Professional can mention “Insolvency Professional” on his visiting cards, letter heads and other communication, as this is recognized by the Central Government in terms of Clause (7) of Part –I of First Schedule to Act. Mention of any other nomenclatures/designations, including membership of any IPA is not allowed.
🏵️ FAQ: Whether a Chartered Accountant in practice can accept a position as auditor previously held by another Chartered Accountant without first communicating with him in writing?
👉 Ans :No, a Chartered Accountant in practice cannot accept a position as auditor previously held by another Chartered Accountant without first communicating with him in writing. It will be in violation of Clause (8) of Part I of First Schedule to the Act.
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👉Students converted from earlier scheme to revised scheme from July 21, 2021 to August 20, 2021 allowed to appear in Old/ New scheme in November, 2021 examination - (08-09-2021)
https://www.icai.org/post/students-converted-from-earlier-scheme-to-revised-scheme
👉Tokenisation – Card Transactions: Permitting Card-on-File Tokenisation (CoFT) Services
https://rbi.org.in/Scripts/NotificationUser.aspx?Id=12159&Mode=0
👉Tokenisation of Card Transactions – Enhancements
https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=52188
👉CBI puts on hold probe into Rs 50,000 crore frauds related to public sector banks as states refuse consent
https://economictimes.indiatimes.com/industry/banking/finance/banking/cbi-puts-on-hold-probe-into-rs-50000-crore-psb-frauds-as-states-refuse-consent/articleshow/86026679.cms
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✅ Income Tax Settlement applications can be filed up to 30th September , 2021. This is a golden opportunity for those caught or likely to be caught for tax evasion. They can pay the tax and interest if any payable and get exemption from penalty and prosecution by filing the settlement applications.
✅ Individual/ HUF business assessees must e-file Form 10-IE by DUE DATE if they wish to opt for New IT regime. Non-business assessees can opt for it in ITR.
✅Students converted from earlier scheme to revised scheme from July 21, 2021 to August 20, 2021 allowed to appear in Old/ New scheme in November, 2021 examination - (08-09-2021)
https://www.icai.org/post/students-converted-from-earlier-scheme-to-revised-scheme
✅Now DSC not required while submitting reply in e-proceedings at Income tax portal.
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CBDT extends due dates for filing of Income Tax Returns and various reports of audit for Assessment Year 2021-22
Posted On: 09 SEP 2021 7:24PM by PIB Delhi
On consideration of difficulties reported by the taxpayers and other stakeholders in filing of Income Tax Returns and various reports of audit for the Assessment Year 2021-22 under the Income-tax Act, 1961(the “Act”), Central Board of Direct Taxes (CBDT) has decided to further extend the due dates for filing of Income Tax Returns and various reports of audit for the Assessment Year 2021-22. The details are as under:
The due date of furnishing of Return of Income for the Assessment Year 2021-22, which was 31st July, 2021 under sub-section (1) of section 139 of the Act, as extended to 30th September, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 31st December, 2021;
The due date of furnishing of Report of Audit under any provision of the Act for the Previous Year 2020-21, which is 30th September, 2021, as extended to 31st October, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 15th January, 2022;
The due date of furnishing Report from an Accountant by persons entering into international transaction or specified domestic transaction under section 92E of the Act for the Previous Year 2020-21, which is 31st October, 2021, as extended to 30th November, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 31st January, 2022;
The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 31st October, 2021 under sub-section (1) of section 139 of the Act, as extended to 30th November, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 15th February, 2022;
The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 30th November, 2021 under sub-section (1) of section 139 of the Act, as extended to 31st December, 2021 vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 28th February, 2022;
The due date of furnishing of belated/revised Return of Income for the Assessment Year 2021-22, which is 31st December, 2021 under sub-section (4)/sub-section (5) of section 139 of the Act, as extended to 31st January, 2022, vide Circular No.9/2021 dated 20.05.2021, is hereby further extended to 31st March, 2022;
It is also clarified that the extension of the dates as referred to in clauses (9), (12) and (13) of Circular No.9/2021 dated 20.05.2021 and in clauses (1), (4) and (5) above shall not apply to Explanation 1 to section 234A of the Act, in cases where the amount of tax on the total income as reduced by the amount as specified in clauses (i) to (vi) of sub-section (1) of that section exceeds rupees one lakh. Further, in case of an individual resident in India referred to in sub-section (2) of section 207 of the Act, the tax paid by him under section 140A of the Act within the due date (without extension under Circular No.9/2021 dated 20.05.2021 and as above) provided in that Act, shall be deemed to be the advance tax.
CBDT Circular No.17/2021 in F.No.225/49/2021/ITA-II dated 09.09.2021 issued. The said Circular is available on www.incometaxindia.gov.in.
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Following due dates have been extended which I believe in wake of the challenges put forward by the new Income Tax portal.
a. Non-Audit tax returns - Extended to December 31, 2021
b. Tax Audit reports - Extended to January 15, 2022
c. TP Report - Extended to January 31, 2022
d. Audit tax returns - Extended to February 15, 2022
e. TP tax returns - Extended to February 28, 2022
f. Belated tax returns - Extended to March 31, 2022 from December 31, 2021.
However, no extension has been announced under Companies Act, 2021 for holding AGM. Hence, Companies will still be required to compile their financial statements and present to their shareholders by Sept 30th, 2021.
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📲 Download my official Android app "Updates by CARJ" 📚 to stay connected with latest news and updates 📝
Thanks for reading
