Compliance Calendar Financial Year wise affected due to COVID-19 for July-20

Compliance Calendar Financial Year wise affected due to COVID-19 for July-20

🔴 FY 2018-19 –

📙 INCOME TAX

✔️31st July 2020- For assesse who has not filled their return or audit for FY 2018-19 last date of filling return

🔴 FY 2019-20 –

📙 INCOME TAX

✔️31st July 2020- The date for making various investment/payment for claiming deduction under Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), etc.

🔴 FY 2020-21 –

📙 INCOME TAX

✔️07th July 2020- TDS deducted /TCS collected for the month of June 2020

✔15th July 2020- TDS return of government department for fourth quarter ending on 31.03.2020

✔15th July 2020- TCS return deposit fir fourth quarter ending on 31.03.2020

✔️31st July 2020- TDS return in form 24Q/26Q for fourth quarter ending on 31.03.2020 

✔31st July 2020- TDS return for quarter 1 ending on 30.06.2020

✔️15th August 2020- Issue of form 16/16A for the fourth quarter ending 31.03.2020

✔️31st March 2021- Date for linking of Aadhaar with PAN

📙 GST

                              

Taxpayer having aggregate turnover > Rs. 5cr in preceding FY

✔️20th July 2020- Due date of filling GSTR-3B for the month of June 2020 (No Extension)

✔️05th August 2020- Due date of filling GSTR-1 for the month of June 2020 

Taxpayer having aggregate turnover upto Rs. 5cr in preceding FY

-GSTR-3B

✔️03rd July 2020- Due date of filling GSTR-3B for the month of March 2020

✔️06th July 2020- Due date of filling GSTR-3B for the month of April 2020

✔️12th Sept 2020- Due date of filling GSTR-3B for the month of May 2020

✔️23th Sept 2020-Due date of filling GSTR-3B for the month of June 2020

-GSTR-1 (Monthly)

✔️10th July 2020- Due date of filling GSTR-1 for the month of March 2020

✔️24th July 2020- Due date of filling GSTR-1 for the month of April 2020

✔️28th July 2020- Due date of filling GSTR-1 for the month of May 2020

✔️05th August 2020- Due date of filling GSTR-1 for the month of June 2020

-GSTR-1 (Quarterly)

✔️17th July 2020- Due date for filling GSTR-1 for the Quarter Jan-March-2020

✔️03rd August 2020- Due date for filling GSTR-1 for the Quarter Apr-June 2020

-Composition Dealer

✔️08th July 2020- Due date for filling CMP-08 for the Quarter Jan-March-2020

✔️15th July 2020- Due date for filling GSTR-4 for the Quarter Jan-March-2020

-ANNUAL RETURN /AUDIT REPORT

✔️30th Sept 2020- GSTR-9 Annual return for FY 2018-19.

✔️30th Sept 2020- GSTR-9C Audit Report for FY 2018-19.

📙 ESI/PF

✔️15th July 2020- Due date of filling ESIC return of contribution for the period October-19 to March 2020.

✔️15th July 2020- Due date for payment of Provident Fund, ESI contribution for employers who have paid wages to their employees for June 2020.

📙 PROFESSIONAL TAX

✔31st  July 2020- Due date for exemption of  late fee payable under amnesty scheme for  in respect of monthly or annual professional tax returns pertaining to any periods up to March 2020 and monthly period of April 2020.

✔31st July 2020- Due date for payment of PT for the month of June where tax liability is more than Rs.50,000/-

NOTE:

1. Vivaad Se Vishwas Scheme extended to 31.12.2020 (without additional 10% of tax)

2. MCA - moratorium from 01.04.20 to 30.09.20 - there shall be no additional fees for late filings.

3. Revised CARO to get applicable from FY 20-21 instead of FY 19-20

4. For newly incorporated companies - Commencement of business is to be filed within 6 months, which is now extended for another 6 months.

5. DIN holders tagged as ‘Deactivated’ have an extended time of up to 30th September 2020 for filing DIR-3KYC/DIR-3 KYC-Web, without fees of Rs 5,000. Companies marked as “ACTIVE non-compliant” have got extended time of up to 30th September 2020 to file eForm ACTIVE without fees of Rs 10,000.

FAQ:

Call : +91-9939000039, +91-9934010214, +91-9430000733

Email : shrikhandgroup@gmail.com

सैलरीड क्‍लास को सरकार की बड़ी राहत, समझें- TDS में 25 फीसदी कटौती के मायने

वित्त मंत्री निर्मला सीतारमण ने 20 लाख करोड़ रुपये के पैकेज के बारे में विस्‍तार से जानकारी दी. इस दौरान उन्‍होंने सैलरीड क्‍लास के लिए भी खास ऐलान किए.

टीडीएस कटौती से लोगों को 55 हजार करोड़ का लाभ होगाटीडीएस दरों में कमी आज यानी 13 मई से ही लागू हो गई है 

बीते मंगलवार को प्रधानमंत्री नरेंद्र मोदी ने कोरोना संकट के बीच अर्थव्यवस्था को रफ्तार देने के लिए 20 लाख करोड़ रुपये के पैकेज का ऐलान किया था. इस पैकेज के बारे में बुधवार को वित्त मंत्री निर्मला सीतारमण ने विस्‍तार से जानकारी दी. इस दौरान उन्‍होंने सैलरीड क्‍लास और टैक्‍सपेयर्स के लिए भी खास ऐलान किए.

वित्त मंत्री ने बताया कि स्रोत पर कर कटौती या टीडीएस (स्रोत पर कर कटौती) की दरों में 25 फीसदी की कमी की जाएगी. यह कमीशन, ब्रोकरेज या अन्य सभी तरह के पेमेंट पर लागू होगा. टीडीएस दरों में कमी आज यानी 13 मई से ही लागू हो गई है और मार्च 2021 तक रहेगी. टीडीएस कटौती से लोगों को 55 हजार करोड़ रुपये का लाभ होगा. इसी तरह, टीसीएस ( स्रोत पर संग्रह कटौती) पर भी 25 फीसदी कटौती की राहत मिली है. उदाहरण के तौर पर अगर किसी का 100 रुपये का टीडीएस/टीसीएस बनता है तो उसे 75 रुपये ही देने होंगे.

क्‍या होता है टीडीएस

टैक्‍सपेयर्स की सैलरी में से टीडीएस (स्रोत पर कर कटौती) कटौती की जाती है. इसके जरिए सरकार पैसे जुटाती है. टीडीएस विभिन्न तरह के इनकम सोर्स पर काटा जाता है. मसलन, सैलरी, किसी निवेश पर मिले ब्याज या कमीशन आदि पर टीडीएस काटा जाता है. कोई भी संस्थान (जो टीडीएस के दायरे में आता है) जो भुगतान कर रहा है, वह एक निश्चित रकम टीडीएस के रूप में काटता है. 

क्‍या है टीसीएस

टीसीएस ( स्रोत पर संग्रह कटौती) का शॉर्ट फॉर्म है. भारत में कुछ सामानों पर एक खास वर्ग के खरीदार से टैक्स वसूला जाता है. इसी को टीसीएस टैक्स कहते है. खरीदार से टैक्‍स कलेक्‍ट कर सेलर भारत सरकार को सौंप देता है.

Key Highlights of FM’s Press Conference on Aatma Nirbhar Reforms

Prime Minister’s Vision

• Call for आत्मनिर्भर भारत अभियान or Self-Reliant India Movement
• Five pillars of Atmanirbhar Bharat – Economy, Infrastructure, System, Vibrant Demography and Demand
• Special economic and comprehensive package of Rs 20 lakh crores – equivalent to 10% of India’s GDP
• Package to cater to various sections including cottage industry, MSMEs, labourers, middle class, industries, among others.
• Bold reforms across sectors will drive the country’s push towards self-reliance
• It is time to become vocal for our local products and make them global.

Pradhan Mantri Garib Kalyan Package (1)

Rs. 1.70 Lakh Crore relief package under Pradhan Mantri Garib Kalyan Yojana for the poor to help them fight the battle against Corona Virus:

• Insurance cover of Rs 50 Lakh per health worker
• 80 crore poor people given benefit of 5 kg wheat or rice per person for next 3 months
• 1 kg pulses for each household for free every month for the next 3 months
• 20 crore women Jan Dhan account holders get Rs 500 per month for next 3 months
• Gas cylinders, free of cost, provided to 8 crore poor families for the next 3 months
• Increase in MNREGA wage to Rs 202 a day from Rs 182 to benefit 13.62 crore families
• Ex-gratia of Rs 1,000 to 3 crore poor senior citizen, poor widows and poor Divyang

Pradhan Mantri Garib Kalyan Package (2)

• Front-loaded Rs 2,000 paid to farmers under existing PM-KISAN to benefit 8.7 crore farmers
• Building and Construction Workers Welfare Fund allowed to be used to provide relief to workers
• 24% of monthly wages to be credited into their PF accounts for next three months for wage-earners below Rs 15,000 p.m. in businesses having less than 100 workers
• Five crore workers registered under Employee Provident Fund EPF to get non-refundable advance of 75% of the amount or three months of the wages, whichever is lower, from their accounts
• Limit of collateral free lending to be increased from Rs 10 to Rs 20 lakhs for Women Self Help Groups supporting 6.85 crore households.
• District Mineral Fund (DMF) to be used for supplementing and augmenting facilities of medical testing, screening etc.

Other Measures – 1

• On the request of the Government of India, RBI raised the Ways and Means advance limits of States by 60% and enhanced the Overdraft duration limits.
• Issued all the pending income-tax refunds up to ₹5 lakh, immediately benefiting around 14 lakh taxpayers
• Implemented “Special Refund and Drawback Disposal Drive” for all pending refund and drawback claims
• Both the above measures amount to ₹18,000 crore of refund.
• Sanctioned Rs 15,000 crores for Emergency Health Response Package

Other Measures – 2

• Provided Relaxation in Statutory and Compliance matters, such as –
• Extending last date for Income Tax Returns to June 30, 2020
• Extending filing GST returns to end of June 2020
• 24*7 custom clearance till 30th June, 2020
• Relaxation for 3 months for debit cardholders to withdraw cash free from any ATMs, etc
• Allowing payment before 15 May, 2020 for Motor Vehicle and Health Insurance Policies
• Mandatory Board meetings extended by 60 days till 30 September
• Allowing Extraordinary General Meetings through Video Conference with e-voting/simplified voting facility

Measures taken by Reserve Bank of India

• Reduction of Cash Reserve Ratio (CRR) has resulted in liquidity enhancement of ₹1,37,000 crores
• Targeted Long Term Repo Operations (TLTROs) of ₹1,00,050 crore for fresh deployment in investment grade corporate bonds, commercial paper, and non-convertible debentures.
• TLTRO of Rs.50,000 crore for investing them in investment grade bonds, commercial paper, and non-convertible debentures of NBFCs, and MFIs.
• Increased the banks’ limit for borrowing overnight under the marginal standing facility (MSF), allowing the banking system to avail an additional ₹1,37,000 crore of liquidity at the reduced MSF rate.

Measures taken by Reserve Bank of India

• Announced special refinance facilities to NABARD, SIDBI and the NHB for a total amount of ₹50,000 crore at the policy repo rate
• Announced the opening of a special liquidity facility (SLF) of ₹50,000 crore for mutual funds to alleviate intensified liquidity pressures.
• Moratorium of three months on payment of instalments and payment of Interest on Working Capital Facilities in respect of all Term Loans
• Easing of Working Capital Financing by reducing margins
• For loans by NBFCs to commercial real estate sector, additional time of one year has been given for extension of the date for commencement for commercial operations (DCCO)

Businesses including MSMEs

1. Rs 3 lakh crores Collateral free Automatic Loans for Business, incl MSME
2. Rs 20,000 crore Subordinate Debt for MSMEs
3. Rs 50,000 cr equity infusion through MSME Fund of Funds
4. New definition of MSMEs
5. Global tender to be disallowed upto Rs 200 crores
6. Other interventions for MSMEs
7. Rs 2500 crores EPF support for Businesses and Workers for 3 more months
8. EPF contribution reduced for Business & Workers for 3 months- Rs 6750 crores
9. Rs 30,000 crores Liquidity Fac
10. ility for NBFC/HCs/MFIs
11. Rs 45,000 cr Partial Credit Guarantee Scheme 2.0 for NBFC
12. Rs 90,000 cr Liquidity Injection for DISCOMs
13. Relief to contractors
14. Extension of Registration and Completion Date of Real Estate Projects under RERA
15. Rs 50,000 cr liquidity through TDS/TCS reductions
16. Other Direct tax Measures 16. Other Direct Tax Measures

Rs 3 lakh crores Collateral-free Automatic Loans for Businesses, including MSMEs

• Businesses/MSMEs have been badly hit due to COVID19 need additional funding to meet operational liabilities built up, buy raw material and restart business
• Decision: Emergency Credit Line to Businesses/MSMEs from Banks and NBFCs up to 20% of entire outstanding credit as on 29.2.2020
• Borrowers with up to Rs. 25 crore outstanding and Rs. 100 crore turnover eligible
• Loans to have 4 year tenor with moratorium of 12 months on Principal repayment
• Interest to be capped
• 100% credit guarantee cover to Banks and NBFCs on principal and interest
• Scheme can be availed till 31st Oct 2020
• No guarantee fee, no fresh collateral
• 45 lakh units can resume business activity and safeguard jobs.

Rs 20,000 crores Subordinate Debt for Stressed MSMEs

• Stressed MSMEs need equity support
• GoI will facilitate provision of Rs. 20,000 cr as subordinate debt
• Two lakh MSMEs are likely to benefit
• Functioning MSMEs which are NPA or are stressed will be eligible
• will provide a support of Rs. 4,000 Cr. to CGTMSE
• CGTMSE will provide partial Credit Guarantee support to Banks
• Promoters of the MSME will be given debt by banks, which will then be infused by promoter as equity in the Unit.

Rs 50,000 cr. Equity infusion for MSMEs through Fund of Funds

• MSMEs face severe shortage of Equity.
• Fund of Funds with Corpus of Rs 10,000 crores will be set up.
• Will provide equity funding for MSMEs with growth potential and viability.
• FoF will be operated through a Mother Fund and few daughter funds
• Fund structure will help leverage Rs 50,000 cr of funds at daughter funds level
• Will help to expand MSME size as well as capacity.
• Will encourage MSMEs to get listed on main board of Stock Exchanges.

New Definition of MSMEs

• Low threshold in MSME definition have created a fear among MSMEs of graduating out of the benefits and hence killing the urge to grow.
• There has been a long-pending demand for revisions.

Announcement:

• Definition of MSMEs will be revised
• Investment limit will be revised upwards
• Additional criteria of turnover also being introduced.
• Distinction between manufacturing and service sector to be eliminated.
• Necessary amendments to law will be brought about.

Existing and Revised Definition of MSMEs

Existing MSME Classification
Criteria : Investment in Plant & Machinery or Equipment
Classification	Micro	Small	Medium
Mfg. Enterprises	Investment<Rs. 25 lac	Investment<Rs. 5 cr.	Investment<Rs. 10 cr.
Services Enterprise	Investment<Rs. 10 lac	Investment<Rs. 2 cr.	Investment<Rs. 5 cr.
Revised MSME Classification
Composite Criteria : Investment And Annual Turnover
Classification	Micro	Small	Medium
Manufacturing & Services	Investment< Rs. 1 cr. and Turnover < Rs.5 cr.	Investment< Rs. 10 cr. and Turnover < Rs.50 cr.	Investment< Rs. 20 cr. and Turnover < Rs.100 cr.

Global tenders to be disallowed upto Rs 200 crores

• Indian MSMEs and other companies have often faced unfair competition from foreign companies.
• Therefore, Global tenders will be disallowed in Government procurement tenders upto Rs 200 crores
• Necessary amendments of General Financial Rules will be effected.
• This will be a step towards Self-Reliant India (आत्मनिर्भर भारत) and support Make in India
• This will also help MSMEs to increase their business.

Other interventions for MSMEs

• MSMEs currently face problems of marketing and liquidity due to COVID.
• e-market linkage for MSMEs to be promoted to act as a replacement for trade fairs and exhibitions.
• Fintech will be used to enhance transaction based lending using the data generated by the e-marketplace.
• Government has been continuously monitoring settlement of dues to MSME vendors from Government and Central Public Sector Undertakings.
• MSME receivables from Gov and CPSEs to be released in 45 days

Rs. 2500 crore EPF Support for Business & Workers for 3 more months

• Businesses continue to face financial stress as they get back to work.
• Under Pradhan Mantri Garib Kalyan Package (PMGKP), payment of 12% of employer and 12% employee contributions was made into EPF accounts of eligible establishments.
• This was provided earlier for salary months of March, April and May 2020
• This support will be extended by another 3 months to salary months of June, July and August 2020
• This will provide liquidity relief of Rs 2500 cr to 3.67 lakh establishments and for 72.22 lakh employees.

Rs. 2500 crore EPF Support for Business & Workers for 3 more months EPF contribution reduced for Business & Workers for 3 months- Rs 6750 crores Liquidity Support

• Businesses need support to ramp up production over the next quarter.
• It is necessary to provide more take home salary to employees and also to give relief to employers in payment of Provident Fund dues,
• Therefore, statutory PF contribution of both employer and employee will be reduced to 10% each from existing 12% each for all establishments covered by EPFO for next 3 months.
• CPSEs and State PSUs will however continue to contribute 12% as employer contribution.
• This scheme will be applicable for workers who are not eligible for 24% EPF support under PM Garib Kalyan Package and its extension.
• This will provide relief to about 6.5 lakh establishments covered under EPFO and about 4.3 crore such employees.
• This will provide liquidity of Rs 6750 Crore to employers and employees over 3 months.

Rs 30,000 crore Special Liquidity Scheme for NBFCs/HFCs/MFIs

• NBFCs/HFCs/MFIs are finding it difficult to raise money in debt markets.
• Government will launch a Rs 30,000 crore Special Liquidity Scheme
• Under this scheme investment will be made in both primary and secondary market transactions in investment grade debt paper of NBFCs/HFCs/MFIs
• Will supplement RBI/Government measures to augment liquidity
• Securities will be fully guaranteed by GoI
• This will provide liquidity support for NBFCs/HFC/MFIs and mutual funds and create confidence in the market. Rs 30,000 crore Special Liquidity Scheme for NBFCs/HFCs/MFIs

Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs

• NBFCs, HFCs and MFIs with low credit rating require liquidity to do fresh lending to MSMEs and individuals
• Existing PCGS scheme to be extended to cover borrowings such as primary issuance of Bonds/ CPs (liability side of balance sheets) of such entities
• First 20% of loss will be borne by the Guarantor ie., Government of India.
• AA paper and below including unrated paper eligible for investment (esp. relevant for many MFIs)
• This scheme will result in liquidity of Rs 45,000 crores

Rs. 90,000 Cr. Liquidity Injection for DISCOMs

• Revenues of Power Distribution Companies (DISCOMs) have plummeted.
• Unprecedented cash flow problem accentuated by demand reduction
• DISCOM payables to Power Generation and Transmission Companies is currently ~ Rs 94,000 cr
• PFC/REC to infuse liquidity of Rs 90,000 cr to DISCOMs against receivables
• Loans to be given against State guarantees for exclusive purpose of discharging liabilities of Discoms to Gencos.
• Linkage to specific activities/reforms: Digital payments facility by Discoms for consumers, liquidation of outstanding dues of State Governments, Plan to reduce financial and operational losses.
• Central Public Sector Generation Companies shall give rebate to Discoms which shall be passed on to the final consumers (industries)

Relief to Contractors

• Extension of up to 6 months (without costs to contractor) to be provided by all Central Agencies (like Railways, Ministry of Road Transport & Highways, Central Public Works Dept, etc)
• Covers construction/ works and goods and services contracts
• Covers obligations like completion of work, intermediate milestones etc. and extension of Concession period in PPP contracts
• Government agencies to partially release bank guarantees, to the extent contracts are partially completed, to ease cash flows

Extension of Registration and Completion Date of Real Estate Projects under RERA

• Adverse impact due to COVID and projects stand the risk of defaulting on RERA timelines. Time lines need to be extended.
• Ministry of Housing and Urban Affairs will advise States/UTs and their Regulatory Authorities to the following effect:
• Treat COVID-19 as an event of ‘Force Majeure’ under RERA.
• Extend the registration and completion date suo-moto by 6 months for all registered projects expiring on or after 25th March, 2020 without individual applications.
• Regulatory Authorities may extend this for another period of upto 3 months, if needed
• Issue fresh ‘Project Registration Certificates’ automatically with revised timelines.
• Extend timelines for various statuary compliances under RERA concurrently.
• These measures will de-stress real estate developers and ensure completion of projects so that homebuyers are able to get delivery of their booked houses with new timelines.

Rs 50,000 crores liquidity through TDS/TCS rate reduction

• In order to provide more funds at the disposal of the taxpayers, the rates of Tax Deduction at Source (TDS) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25% of the existing rates.
• Payment for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. shall be eligible for this reduced rate of TDS.
• This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. from tomorrow to 31st March, 2021.
• This measure will release Liquidity of Rs. 50,000 crore.

Other Direct Tax Measures

• All pending refunds to charitable trusts and noncorporate businesses & professions including proprietorship, partnership, LLP and Co-operatives shall be issued immediately.
• Due date of all income-tax return for FY 2019-20 will be extended from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October,2020.

Other Direct Tax Measures

• Date of assessments getting barred on 30th September,2020 extended to 31st December,2020 and those getting barred on 31st March,2021 will be extended to 30th September,2021.
• Period of Vivad se Vishwas Scheme for making payment without additional amount will be extended to 31st December,2020.

Compliance Calendar Financial Year wise affected due to COVID-19

Compliance Calendar Financial Year wise affected due to COVID-19

FY 2018-19 –

INCOME TAX

🌹 For assesse who has not filled their return or audit for FY 2018-19 last date of filling extended to 30.06.2020.

FY 2019-20 –

INCOME TAX

🌹 The date for making various investment/payment for claiming deduction under Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), etc. has been extended to 30.06.2020.

FY 2020-21 –

INCOME TAX

🌹07th May 2020- TDS/TCS payment for April 2020. (No Extension)

🌹30th June 2020- TDS return in form 24Q/26Q for fourth quarter ending on 31.03.2020 

🌹30th June 2020- TDS return in form 26QB/QC/QD for March and April 2020

🌹30th June 2020- Issue of form 16/16A for the forth quarter ending 31.03.2020

GST

🌹30th June 2020- Monthly GSTR-1 Sales Report for month of March, April, May 2020  

🌹30th June 2020- Quarterly GSTR-1 Sales Report for month of March 2020  

🌹24th June 2020- GSTR-3B for taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year for February, March, April 2020. 

[Interest rate- Nil for first 15 days from the original due date, and 9 per cent thereafter (this rate will be applicable only if filed before this date)]

🌹27th June 2020- GSTR-3B for taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year for May 2020.

🌹29th June 2020- GSTR-3B for taxpayers having an aggregate turnover of more than rupees 1.5 crores but less than 5 crores in the preceding financial year for February, March 2020.

🌹30th June 2020- GSTR-3B for taxpayers having an aggregate turnover of more than rupees 1.5 crores but less than 5 crores in the preceding financial year for April 2020.

🌹30th June 2020- GSTR-3B for taxpayers having an aggregate turnover of less than rupees 1.5 crores in the preceding financial year for February 2020.

🌹03rd July 2020- GSTR-3B for taxpayers having an aggregate turnover of less than rupees 1.5 crores in the preceding financial year for February 2020.

🌹06th July 2020- GSTR-3B for taxpayers having an aggregate turnover of less than rupees 1.5 crores in the preceding financial year for February 2020.

🌹12th July 2020- GSTR-3B for taxpayers having an aggregate turnover of less than rupees 5 crores in the preceding financial year for May 2020. 

🌹30th June 2020- GST CMP-02 Opt in for composition in FY 2020-21

(Normal Taxpayers wanting to opt for Composition should not file GSTR3B and GSTR 1 for any tax period of FY 2020-21 from any of the GSTIN on the associated PAN.)

ESI/PF

🌹15th May 2020- Due date for payment of Provident Fund, ESI contribution for employers who have paid wages to their employees for March 2020.

🌹15th May 2020- Due date for payment of Provident Fund, ESI contribution for employers who have paid wages to their employees for April 2020.

NOTE: 

1. Vivaad Se Vishwas Scheme extended to 30.06.2020 (without additional 10% of tax)

2. Interest rate at 9% for Late deposition of TDS till 30.06.2020

3. PAN Aadhar linking deadline now 30.06.2020

4. All notices / proceedings / filing dates till 31.03.2020 - gets extended to 30.06.2020

5. Companies with less than Rs. 5 Crores TO - no interest, penalty, late fees in GST. For companies above Rs. 5 Crores - only interest at 9% will be charged

6. Sabka Vikas scheme for Service Tax (Indirect Taxes) extended till 30.06.2020 - without any interest liability

7. Customs - 24x7 Clearance till 30.06.2020

8. MCA - moratorium from 01.04.20 to 30.09.20 - there shall be no additional fees for late filings.

9. Board meetings are relaxed for 60 days for next 2 quarters

10. Revised CARO to get applicable from FY 20-21 instead of FY 19-20

11. For newly incorporated companies - Commencement of business is to be filed within 6 months, which is now extended for another 6 months.

12. DIN holders tagged as ‘Deactivated’ have an extended time of up to 30th September 2020 for filing DIR-3KYC/DIR-3 KYC-Web, without fees of Rs 5,000. Companies marked as “ACTIVE non-compliant” have got extended time of up to 30th September 2020 to file eForm ACTIVE without fees of Rs 10,000.

--Stay Home, Stay Safe

RBI may extend moratorium on loans by another 3 months

With further extension of the nationwide lockdown, the RBI is considering a proposal for extending the moratorium on bank loans by another three months to help people and industry impacted by the ongoing lockdown to contain COVID-19. Suggestions from various quarters, including from Indian Banks’ Association, have come for the further extension of moratorium and the RBI is actively considering them, according to sources.

The government on Saturday extended the lockdown for further two weeks till May 17 with certain relaxations for red, orange and green zones. Income stream will not resume due to the continuation of nationwide lockdown, the sources said, adding that so many entities and individuals will be unable to service their debt in this circumstances at the end of the present moratorium period ending on May 31.

So, extension of moratorium by another three months would be a practical approach from the regulator, a senior public sector bank official said. It will help both borrowers and banks in these difficult times, the official added. The Reserve Bank of India (RBI) had on March 27 allowed banks and financial institutions to offer a moratorium of three months on payment of instalments of all term loans outstanding as on March 1 to help mitigate hardship faced by borrowers.

“All commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all -India Financial Institutions, and NBFCs (including housing finance companies and micro-finance institutions) (“lending institutions”) are being permitted to allow a moratorium of three months on payment of instalments in respect of all term loans outstanding as on March 1, 2020,” the RBI had said.

Accordingly, it had said, the repayment schedule and all subsequent due dates, as also the tenor for such loans, may be shifted across the board by three months. As a result of this moratorium, individuals’ EMI repayments of loans taken were not deducted from their bank accounts, providing much needed liquidity. The loan EMI payments will restart only once the moratorium time period of 3 months expires.

RBI Governor Shaktikanta Das on Saturday held a meeting of held meeting with public and private sector banks where the issue of loan moratorium was also reviewed. Credit flows to different sectors of the economy, including liquidity to non-banking financial companies, microfinance institutions, housing finance companies, mutual funds, etc, and post lockdown credit flows including provision of working capital, with special focus on credit flows to MSMEs were also deliberated.

The Supreme Court earlier this week directed the RBI to ensure that its March 27 guidelines directing lending institutions to allow a three-month moratorium to all borrowers is implemented in letter and spirit.

Tax Audit & Penalty of Rs. 10,000/- on chartered Accountants for error in the audit report

Tax Audit & Penalty of Rs. 10,000/- on chartered Accountants for error in the audit report

The Tax Audit due date is on peak. In an attempt to complete the audit to save client from penalty, CA’s make commit error.

All the Chartered Accountants are busy completing their works. Note carefully that any mistake by the Chartered Accountant in the Tax Audit Report will cost him Rs. 10,000/- as per Section 271J of the Income Tax Act, 1961. Needless to say, clients will not come forward to pay this penalty or share the burden of CA.

Section 271J of the Income Tax Act, 1961 reads as under:

271J. Without prejudice to the provisions of this Act, where the Assessing Officer or the Commissioner (Appeals), in the course of any proceedings under this Act, finds that an accountant or a merchant banker or a registered valuer has furnished incorrect information in any report or certificate furnished under any provision of this Act or the rules made thereunder, the Assessing Officer or the Commissioner (Appeals) may direct that such accountant or merchant banker or registered valuer, as the case may be, shall pay, by way of penalty, a sum of ten thousand rupees for each such report or certificate.

Explanation.—For the purposes of this section,—

(a)  “accountant” means an accountant referred to in the Explanation below sub-section (2) of section 288;

(b)  “merchant banker” means Category I merchant banker registered with the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992);

(c)  “registered valuer” means a person defined in clause (oaa) of section 2 of the Wealth-tax Act, 1957 (27 of 1957).]

In this article we will discuss the most serious mistakes which Chartered Accountants may commit or may be held for professional negligence. One must take following observation, points, information while finalizing the tax audit report:

1. Interest, Late fees, Penalties under GST:

Since the Goods and Services Tax (GST) regime is a new one, tax payers have committed mistakes in the same. Either they have delayed their registrations or have uploaded the returns lately. The GST Act levies penalties/ fines on the contraventions to the provisions of the act. In few circumstances waiver have been given by the Government. But yes the contraventions are still chargeable in many cases. The Income Tax Act, 1961 does not permit the deduction of penalties, fees, fines from the turnover for calculation of Profit as per section 37. Section 37 disallows the expenditure incurred for any purpose that is an offence or which is prohibited by any law.

But many Chartered Accountants are permitting the Debit of Late Fees/ Interest to Profit and Loss and are not even reporting it in the Tax Audit Report.

2. Another mistake is ignoring Section 145A of the Income Tax Act, 1961 as substituted by Finance Act 2018 with retrospective effect. Clause (ii) of Section 145A reads as under:

145A. For the purpose of determining the income chargeable under the head “Profits and gains of business or profession”,

(ii)  the valuation of purchase and sale of goods or services and of inventory shall be adjusted to include the amount of any tax, duty, cess or fee (by whatever name called) actually paid or incurred by the assessee to bring the goods or services to the place of its location and condition as on the date of valuation;

As per this clause, while doing stock valuation of inventory the value shall include the amount of any tax, duty, cess or fees. The amount of taxes on the goods shall be included in cost. Taxes included Goods and Service Tax. Also this is a retrospective amendment and shall be applicable from FY 2016-17. The amount of both opening and closing stock shall be including the amount of tax. The difference in the opening balances may be showed as tax difference.

Over and above this there may be various small mistakes that can be ruled off by applying full care and due diligence.

3.The receipts and TDS as shown in 26AS may be checked with the receipts and TDS in the books of accounts. The same should be shown in ITR. If there is any mismatch in details furnished in ITR and 26AS, then one may receive notice for such mismatch.

4.CA should not forget to take care of sec 14A of Income Tax Act, 1961 which provides for disallowance of expenses incurred for earning tax exempt income as read with Rule 6D.

5.In ITR form now, reporting of GST turnover is required and in case GST turnover and turnover as per books do not match, one may have to reply to notice. CA’s should keep the reconciliation of differences in turnover and may ascertain that there is explainable error and nothing like a sort of  professional negligence.

6.In ITR, there is a new reporting requirement. Trading and manufacturing account are required to be furnished separately. Verify with above perspective if there are vast variation.

7.Non compliance or non reporting of ICDS will tantamount to professional negligence and will be a fit case for levy of penalty u/s 271J

8.Payment of interest to NBFC also attracts TDS and is not exempt like payment of interest to Bank. Needless to say, just casualness in incorporate it in the TAR will result in adverse consequences. Similarly, acceptance & repayment of loan from NBFC will also form the part of section 269SS & 269T reporting.

9.While furnishing amount of other expenses in ITR, if substantial amount is reported in other expense, CA should check if anything is of personal or political nature and ensure to report it in Tax Audit Report