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The Income Tax Department has facilitated a new functionality for Banks and Post offices through which they can ascertain the TDS applicability rates on cash withdrawal of above INR 20 lacs in case of non – filer of income tax return and that of above INR 1 Crore in case of filer of the income – tax return. The CBDT said that the functionality was available as ‘verification of applicability u/s 194N’ on www.incometaxindiaefiling.gov.in since 1st July 2020 and the same is also…

The Central Govt. has notified revised method of classification of micro, small and medium enterprises w.e.f. 1st July 2020. The classification of entities based on investment in plant & machinery or equipment and/or aggregate turnover is proposed as follows: Micro units- investment in plant & machinery or equipment (P&M or E) upto Rs. 1 Cr. and turnover upto Rs. 5 Cr. Small units- investment in P&M or E upto Rs. 10 Cr. and turnover upto Rs. 50 Cr. Medium units-…

Under the Credit Guarantee Scheme for Subordinate Debt (CGSSD), the government will provide a subordinate debt facility to the promoters of micro, small and medium enterprises that are either distressed or classified under non-performing assets. In case of default, creditors giving subordinate debt are paid after primary debt is settled in full. The scheme will provide a guarantee cover worth Rs 20,000 crore to more than two lakh MSMEs. Kindly find attached Credit Guarantee Scheme for Subordinate Debt (CGSSD) -…

  In view of the challenges faced by taxpayers in meeting the statutory and regulatory compliance requirements across sectors due to the outbreak of Novel Corona Virus (COVID-19), the Government brought the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 [the Ordinance] on 31st March, 2020 which, inter alia, extended various time limits.  In order to provide further relief to the taxpayers for making various compliances, the Government has issued a Notification on 24th June, 2020, the salient…

  1. What is TReDS? Ans. TReDS is an electronic platform for facilitating the financing / discounting of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers. These receivables can be due from corporates and other buyers, including Government Departments and Public Sector Undertakings (PSUs). 2. Who are the participants in TReDS? Ans. Sellers, buyers and financiers are the participants on a TReDS platform. 3. Who can participate as a seller in TReDS? Ans. Only MSMEs can…

Amendments in New Income Tax Return Forms Due to the outbreak of Covid-19, the due date for filing  tax returns in A.Y. 2020-21 extended to November 30, instead of July 31. With the amendments made by the Finance Act 2019, came the changes to be followed while filing ITR Forms. Recently CBDT has notified some key changes in new IT Forms for A.Y. 2020-21 (i.e. F.Y. 2019-20). These changes account for new disclosures/details which the Taxpayers needs to reveal to…

  Section 7 of IBC enables financial creditors to file for insolvency against a corporate debtor, Section 9 provides for application of insolvency by an operational creditor. Similarly, Section 10 relates to initiation of insolvency proceedings by a corporate applicant. These three sections have now been suspended temporarily for defaults arising on or after March 25, 2020 for a period of six months or such further period, not exceeding one year from such date, as may be notified.   Also…

  The CBDT has notified ITR forms for AY 2020 – 2021. Owing to the COVID – 19 pandemic, the FM had announced that taxpayers would be entitled to claim benefit of payment/deposit/ investments made during the period from 1st April 2020 – 30th June 2020 in their return of income for AY 2020 – 2021. Accordingly, Schedule DI has been inserted in the new forms to include such details.

  The CBDT has notified new Form 26AS. Form 26AS will now be replaced by ‘Annual Information Statement’. Besides containing details regarding TDS and TCS deducted to the PAN of the taxpayer, the new simplified form will contain details pertaining to mutual fund transactions, completed IT proceedings, status of tax demand. Notification attached for your reference.

  In view of the disruptions due to outbreak of COVID- 19 pandemic, RBI has decided to extend the time period for completion of remittances against normal imports (except in cases where amounts are withheld towards guarantee of performance etc. and excluding import of gold/diamonds and precious stones/ jewellery) from six months to twelve months from the date of shipment for such normal imports made on or before July 31, 2020.   Please find attached RBI notification for further details.