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CBDT (Central Board of Direct Taxes) extends the due date for filing of Income Tax Returns for FY 2018-19 (AY 2019-20) from 31st July, 2020 to 30th September, 2020, vide Notification in S.O. 2512(E) dated 29th July, 2020.

What is Section 194N? Section 194N was inserted by the Finance (No. 2) Act, 2019 with effect from 01-September-2019. This section is applicable in case of cash withdrawals of Rs. 1 crore during a financial year. The payer will be required to deduct tax at source while paying any sum exceeding Rs. 1 crore in cash to an account holder.  Who is required to deduct TDS u/s 194N? Following payer will require to deduct TDS at source: A Bank A Co-operative Bank A Post Office Which are the payee(s) where TDS is not required to be deducted? Government or Government body Banking Company Co-operative society engaged in carrying on the business of banking Post office White label ATM operator of any bank also including co-operative banks Any other person notified by the Government When Tax at source will be required to be deducted? TDS will be deducted by the payer when the cash payment is made over and above Rs. 1 crore in a financial year to payee. The tax will be deducted only on the amo...

What is an Angel Tax?    Angel tax  is the income tax payable by a company, not being a company in which public is substantially interested (generally private companies), on the aggregate consideration received from a  resident investor  which is in  excess of the Fair Market Value (FMV)  of the shares so issued via off market transactions (provided the price of the share issued exceeds the face value of shares). The excess consideration received is considered as an income from other sources in pursuance to section 56(2)(viib) of the Income tax Act, 1961 and is chargeable at the rate of 30%. For instance , if your company receives an investment amount of Rs. 1,000 crores against issue of shares and the Fair Market Value of these shares is Rs. 750 crores, then the balance Rs. 250 crores shall be considered as excess amount or we can say the premium amount and shall be taxable.   Which investments fall under the ambit of Angel Tax? Why are s...

CBDT (Central Board of Direct Taxes) gives One-time relaxation for verification of income-tax returns pending for processing for the Assessment Years 2015-16, 2016-17, 2017-18, 2018-19, 2019-20  on account of not verifying of ITR-V Form.  Modes for verifying ITR-V Form: Through Aadhar OTP By logging into e-filing account through net banking. EVC through Bank Account Number EVC through Demat Account Number EVC through Bank ATM By sending a duly signed physical copy of ITR-V though speed post to the CPC, Bengaluru For details refer circular    https://www.incometaxindia.gov.in/Communications/Circular/Circular_13_2020.pdf

In case of death of sole proprietor, if the business is intended to be carried on by the successor or legal heir, the successor cannot do so using the same GST registration since he will have a different PAN .  Below mentioned steps need to be followed by Successor/Legal Heir: New GST Registration by Legal Heir – Legal Heir will have to take new GST Registration within 30 Days of Death, with reason of registration should be “death of the proprietor”. Get himself registered as Authorised Signatory - Legal Heir has to get himself registered as Authorised Signatory on behalf of the deceased proprietor by submitting the death certificate & succession certificate to proper officer. Proper officer after verification will provide new login Id & password to legal Heir to File ITC-02 & form Cancellation of Registration. Transfer of Input Tax Credit & Tax Liability - Section 18(3) of the CGST Act, 2017 allows the transfer of ITC where the business is being transferred as lo...

LOWER TAX SLAB RATES : A senior citizen is given a higher exemption limit as compared to non senior citizens. The exemption limit granted to senior citizens and very senior citizens is Rs 3 lakhs and 5 lakhs which is higher than the exemption limit of Rs 2.5 lakhs granted to non senior citizens. Therefore, senior citizens and very senior citizens enjoy additional exemption benefit of Rs 50,000 and Rs2, 50,000 respectively. BENEFITS IN RESPECT OF INTEREST INCOME : Section 80TTB of the Income tax Act 1961 provides tax benefit to senior citizens on account of interest income earned on deposits with bank (both savings and fixed) or post office or co-operative banks of an amount up to Rs 50,000. BENEFIT IN TERMS OF MEDICAL TREATMENT : Section 80D provides additional deduction for payment of medical insurance premium up to Rs 50,000 as compared to non senior citizens who are given a deduction of up to Rs 25000. EXEMPTION IN ADVANCE TAX PAYMENT : As per Section 208 of Incom...