The Central Board of Direct Taxes has extended the due dates of Income Tax Return, Tax Audit, TDS Statement and Other Compliances to provide relief to taxpayers in view of the COVID-19 pandemic. Read the official announcement below:
Circular No. 9 of 2021
F.No.225/49/2021 -ITA-II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi,
Dated 20th May, 2021
Subject: Extension of time limits of certain compliances to provide relief to taxpayers in view of the severe pandemic
The Central Board of Direct Taxes, in exercise of its power under section 119 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) provides relaxation in respect of the following compliances:
1) The Statement of Financial Transactions (SFT) for the Financial Year 202021, required to be furnished on or before 315t May 2021 under Rule 114E of the Income-tax Rules, 1962 (hereinafter referred to as “the Rules”) and various notifications issued thereunder, may be furnished on or before 30th June 2021;
2) The Statement of Reportable Account for the calendar year 2020, required to be furnished on or before 31st May 2021 under Rule 114G of the Rules, may be furnished on or before 30th June 2021;
3) The Statement of Deduction of Tax for the last quarter of the Financial Year 2020-21, required to be furnished on or before 31st May 2021 under Rule 31A of the Rules, may be furnished on or before 30th June 2021;
4) The Certificate of Tax Deducted at Source in Form No 16, required to be furnished to the employee by 15th June 2021 under Rule 31 of the Rules, may be furnished on or before 15th July 2021;
5) The TDS/TCS Book Adjustment Statement in Form No 24G for the month of May 2021, required to be furnished on or before 15th June 2021 under Rule 30 and Rule 37CA of the Rules, may be furnished on or before 30th June 2021;
6) The Statement of Deduction of Tax from contributions paid by the trustees of an approved superannuation fund for the Financial Year 2020-21, required to be sent on or before 31st May 2021 under Rule 33 of the Rules, may be sent on or before 30th June 2021;
7) The Statement of Income paid or credited by an investment fund to its unit holder in Form No 64D for the Previous Year 2020-21, required to be furnished on or before 15th June 2021 under Rule 12CB of the Rules, may be furnished on or before 30th June 2021;
8) The Statement of Income paid or credited by an investment fund to its unit holder in Form No 64C for the Previous Year 2020-21, required to be furnished on or before 30th June 2021 under Rule 12CB of the Rules, may be furnished on or before 15th July 2021;
9) The due date of furnishing of Return of Income for the Assessment Year 2021-22, which is 31st July 2021 under sub-section (1) of section 139 of the Act, is extended to 30th September 2021;
10) 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, is extended to 31st October 2021;
11) 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, is extended to 30th November 2021;
12) 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, is extended to 30th November 2021;
13) 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, is extended to 318t December 2021;
14) 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, is extended to 31st January 2022.
Clarification 1: It is clarified that the extension of the dates as referred to in clauses (9), (12) and (13) 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 one lakh rupees.
Clarification 2: For the purpose of Clarification 1, 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 this Circular) provided in that Act, shall be deemed to be the advance tax.
Income Tax
Income Tax Return Filing for AY 2019-20
What is Income Tax and How it is Charged
Income Tax is a Tax that is imposed on Individual or entities (Tax-Payer) on their income or profits earned during a particular tax period. Income Tax is charged as a percentage of taxable income that varies on the basis income of the tax-payer. The Financial year (April to March in India) in which the income is earned by the tax-payer is known as previous year and the next financial year in which such income is taxed or assessed is known as assessment year. For the financial or previous year 2018-19 the assessment year is 2019-20.
Every individual tax payer & HUF whose income during a previous year exceeds the basic exemption limit (currently Rs.250000/-) is required to file Income Tax Return, in case of other tax payers filing of return is mandatory irrespective of their income.
Type of Taxpayers:
For the classification purpose,Tax payers are divided into following categories under income tax: –
- Individual
- Hindu Undivided Family
- Company
- Firm
- An Association of persons or a body of individuals
- A Local Authority
Mode of Filing of Return
Every person is required to file his Income Tax Return electronically except following:
Individuals of the age of 80 years or more whose income does not exceed 5 lakh rupees and who does not claim any refund in his return may file return in paper form, if he is filing his return in Form ITR-1 & Form ITR-4. Everyone else is required to file his return electronically.
Heads of Income
Income earned by a tax payer is divided into following five categories or heads under income tax:-
- Salary: – Existence of relationship of employer and employee is must between the payer and payee to tax the income under this head. Income under the head salaries includes the following;
- Wages
- Annuity
- Pension
- Gratuity
- Fees, Commission, Perquisites, Profits in lieu of or in addition to Salary or Wages
- Advance of Salary
- Leave Encashment
- Annual accretion to the balance of Recognized Provident Fund
- Transferred balance in Recognized Provident Fund
- Contribution by Central Government or any other employer to Employees Pension Account
- House Property: The Income is taxable under this head if the tax-payer ownsa house property consisting of any building or land appurtenant thereto and the house property is not being used for the purpose of business or profession carried on by the tax-payer.
- Capital Gains: The Income is taxable under this head if the tax-payer earns any profit or gains by the transfer of a Capital Asset during the previous year. Capital Asset includes the following:
- Any kind of property held by tax-payer, whether or not connected with business or profession of the tax-payer.
- Any securities held by a FII which has invested in such securities in accordance with the regulations made under the SEBI Act, 1992.
- Income from Business or Profession:The Income is taxable under this head if it is earned by the tax-payer as a result of his Business (trading, manufacturing etc.) or profession (Doctor, Engineer, Advocate, Company Secretary etc.).
- Income from other sources: Any income which cannot be charged under any of above heads will be charged under this head. Dividend Income, Interest on securities,Composite rental income from letting of plant, machinery or furniture with buildings if such income is not chargeable under the head business or profession are some example of such income.
Slab of Income:
For individual tax-payers tax is levied on the basis of slab system where different rates have been provided for different slabs and such tax slabs may change during every union budget. Income tax slab for all the tax-payers for the assessment year 2019-20 are summarized in below table: –
Income tax slab for Financial Year 2018-19
|
Type of Taxpayer |
Income Slab |
Tax Rate |
Health & Education Cess |
|
Individual & HUF below 60 years of Age |
Upto Rs.2.5 Lakh |
Nil |
|
|
Rs.250000 to 500000 |
5% |
4% of tax |
|
|
Rs. 500000 to 1000000 |
20% |
4% of tax |
|
|
Above 1000000 |
30% |
4% of tax |
|
|
|
|
|
|
|
Individual & HUF of age above 60 Years but Less than 80 Years. |
Up to Rs 300000 |
Nil |
|
|
Rs.300000 to 500000 |
5% |
4% of tax |
|
|
Rs. 500000 to 1000000 |
20% |
4% of tax |
|
|
Above 1000000 |
30 % |
|
|
|
|
|
|
|
|
Individual & HUF of age above 80 Years. |
Up to Rs 5,00,000 |
Nil |
|
|
500000 to 1000000 |
20% |
4% of tax |
|
|
Above 1000000 |
30% |
4% of tax |
|
|
|
|
|
|
|
Domestic Companies |
Gross Turnover Upto Rs. 250 Cr. |
25% |
4% of tax
|
|
Gross Turnover exceeding 250 Cr. |
30% |
4 % of tax
|
Due Dates for Filing Return of Income for AY 2018-19
Due dates for filing Income tax return are as follows:
| S.No. | Type of Taxpayer | Due Date |
| 1 | Individuals, HUF, BOI, AOP. (Taxpayers with no audit requirement.) | 31st July of relevant Assessment Year |
| 2 | Company, Taxpayers whose accounts need to be Audited, working partner (whose firm’s books need to be Audited) | 30th September of the relevant Assessment Year |
| 3 | Individuals, HUF, BOI, AOP (Taxpayers with audit requirement) | 30th September of the relevant Assessment Year |
;
Tax on Cryptocurrency as Virtual Digital Assets
In the Union Budget for FY 22-23, the government of India announced provisions related to Taxation of Cryptocurrency as Virtual Digital Assets, earlier to this there was no provisions for taxation of Cryptocurrency and as General practice, most the Taxpayers are declaring their income either as Trading business or if brought as an investment perspective than as Capital Assets, Short Term or Long Term Capital Gain provisions are been followed by many Industry Experts. In this article, we will discuss provisions related to the Taxation of Crypto as Digital Virtual Digital Assets.
Meaning of Virtual Digital Assets
“Virtual Digital Asset” Means––
(A) Any Information Or Code Or Number Or Token (Not Being Indian Currency Or Foreign Currency), Generated Through Cryptographic Means Or Otherwise, By Whatever Name Called, Providing A Digital Representation Of Value Exchanged With Or Without Consideration, With The Promise Or Representation Of Having Inherent Value, Or Functions As A Store Of Value Or A Unit Of Account Including Its Use In Any Financial Transaction Or Investment, But Not Limited To Investment Scheme; And Can Be Transferred, Stored Or Traded Electronically;
(B) A Non-Fungible Token Or Any Other Token Of Similar Nature, By Whatever Name Called;
(C) Any Other Digital Asset, As The Central Government May, By Notification In The Official Gazette Specify: Provided That The Central Government May, By Notification In The Official Gazette, Exclude Any Digital Asset From The Definition Of Virtual Digital Asset Subject To Such Conditions As May Be Specified Therein
Tax on Crypto as Virtual Digital Assets
For Taxation of Virtual Digital Assets new Section 115BBH has been inserted in Income Tax Act
Where the total income of an assessee includes any income from the transfer of any virtual digital
asset, the income-tax payable shall be the aggregate of
(a) the amount of income-tax calculated on the income from transfer of such virtual digital asset at the rate of thirty per cent and
(b) the amount of income-tax with which the assessee would have been chargeable had the total income of the assessee been reduced by the income referred to in clause (a).
From the above, it is clear that the minimum tax rate shall be thirty percent on any income received from Transfer of Virtual Digital Assets if your rate of tax is below thirty percent or if your rate of tax is more than thirty percent than the higher rate of tax applicable will be the rate of Tax on transfer of Virtual Digital Assets.
Deduction allowed while Calculating Income of Virtual Digital Asset
While calculating income from Virtual Digital Assets deduction in respect to Cost of Acquisition will be allowed and no other deduction will be allowed. Also, Set-off of any loss will not be allowed while calculating income from Virtual Digital Assets.
TDS on payment on Transfer of Virtual Digital Assets
A New Section 194S has been inserted in Income-tax Act for Provisions related to TDS on Virtual Digital Assets
Any person responsible for paying to a resident any sum by way of consideration for transfer of a virtual digital asset shall, at the time of credit of such sum to the account of the resident or at the time of payment of such sum by any mode, whichever is earlier, deduct an amount equal to one percent. of such sum as income-tax thereon
Further, if there is an exchange of one Virtual Digital Assets for another than the person responsible for paying such consideration shall, before releasing the consideration, ensure that tax has been paid in respect of such consideration for the transfer of virtual digital assets.
Non Applicability of TDS on specified person
TDS on Crypto is not applicable if the value or aggregate value of such consideration does not exceed fifty thousand rupees and ten thousand rupees for other than specified persons during the financial year.
“specified person” means a person,–– (a) being an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business carried on by him or profession exercised by him does not exceed one crore rupees in case of business or fifty lakh rupees in case of the profession, during the financial year immediately preceding the financial year in which such virtual digital asset is transferred; (b) being an individual or a Hindu undivided family, not having any income under the head “Profits and gains of business or profession”
TDS provisions will be applicable from 01st July 2022.
Last Date For Filing ITR F.Y. 2018-19 and Penalty On Late Filing of ITR
Due Dates for Filing Income Tax Return
As per the provisions contained in section 139 of Income Tax Act, 1961 every person whose income during the financial year exceeds two lakh fifty thousand rupees (Financial Year 2018-19) is required to file Income Tax Return on or before due date . Due Dates for filing Income Tax Return for the FY 2018-19 is as follows:
| Type of Assesses | Due Date |
| Individual or HUF whose accounts are not liable for tax audit | 31st July,2019 |
| Partnership Firm/LLP whose accounts are not liable for tax audit | 31st July,2019 |
| Company | 30th September,2019 |
| Individual or HUF whose accounts are liable for tax audit | 30th September,2019 |
| Partnership Firm/LLP whose accounts are not liable for tax audit | 30th September,2019 |
| Working partner of a firm whose accounts are liable for tax audit | 30th September,2019 |
| Assesses involved in foreign transaction u/s 92E | 30th November,2019 |
Penalty on Late Filing of Income Tax Return-FY2018-19
As per the provisions of Section 234F of Income Tax Act, late filing of ITR would attract penalty as follows:
- Five thousand rupees, if the return is filed on or before the 31st December, 2019.
- Ten thousand rupees, if the return is filed after 31st December, 2019.
If the total income of the person does not exceed five lakh rupees, the amount of penalty shall not exceed one thousand rupees.
Important Points to Note-FY 2018-19
- A person who fails to file his Income Tax Return on or before above mentioned due dates can file his return after due dates by paying the penalty & interest 31st March,2020, i.e. Last Date for filing Income Tax with penalty Return for FY 2018-19 is 31st March,2020.
- Return filed after due date would be considered as belated return and such belated return cannot be revised.
- Interest would also be levied on late filing of Income Tax Return.
- No penalty would be levied on a person filing Income Tax Return after due dates whose total income during the FY 2018-19 do not exceed two lakh fifty thousand rupees.
Click here to File your Income Tax Return
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How to Apply For Free PAN Card Online in India
How to apply for instant PAN
- To apply for PAN, please visit the e-Filing website of Income-tax department. (Url: www.incometaxindiaefiling.gov.in) Click the link- ‘Instant PAN through Aadhaar’.
- Click the link- ‘Get New PAN’. Fill in your Aadhaar in the space provided, enter captcha and confirm.
- The applicant will receive an OTP on the registered Aadhaar mobile number; submit this OTP in the text box on the webpage. After submission, an acknowledgement number will be generated.
- Please keep this acknowledgment number for future reference. On successful completion, a message will be sent to the applicant’s registered mobile number and e-mail id (if registered in UIDAI & authenticated by OTP). This message specifies the acknowledgement number.
The Indian government has come up with new facility for allotment of instant PAN Card for all those whose who do not have PAN card and have vaild Aadhar Card, Aadhar Card must be mobile OTP enabled.
This will reduce time of 10-15 Days for getting PAN as per Normal procedure.
Scheme of Instant PAN allotment
This facility is for allotment of Instant PAN (on near-real time basis) for those applicants who possess a valid Aadhaar number. PAN is issued in PDF format to applicants, which is free of cost. The applicant is required to type in her/his valid Aadhaar number and submit the OTP generated on the registered mobile number. Once the process is complete, a 15-digit acknowledgment number is generated. Once request is submitted, the applicant can check the status of the request at any time by providing her/his valid Aadhaar number and on successful allotment can download the PAN. The applicant will also receive a copy of the PAN in the e-mail id registered with the Aadhaar database.
The salient points of this facility are:
The applicant should have a valid Aadhaar which is not linked to any other PAN.
The applicant should have his mobile number registered with Aadhaar.
This is a paper-less process and applicants are not required to submit or upload any documents.
The applicant should not have another PAN. Possession of more than one PAN will result in penalty under section 272B(1) of Income-tax Act.
How to download PAN To download PAN, please go to the e-Filing website of Income-tax department. (Url: www.incometaxindiaefiling.gov.in)
Click the link- ‘Instant PAN through Aadhaar’. Click the link- ‘Check Status of PAN’. Submit the Aadhaar number in the space provided, then submit the OTP sent to the Aadhaar registered mobile number. Check the status of application- whether PAN is allotted or not. If PAN is allotted, click on the download link to get a copy of the e-PAN pdf.
House Rent Allowance (HRA) and Deduction of Rent under Income Tax
House Rent Allowance (HRA)
As the name suggests HRA is a specific allowance that is granted by the employer to employee to meet the expenses incurred on rent. As per section 10 of Income Tax Act, 1961 Amount of HRA is not included in the total income of a person, which results in reduced tax liability. For claiming benefits of HRA exemption following conditions must be satisfied:
- The employee has actually incurred expenditure on payment of rent i.e. he/she is living in a rented house.
- The employee must not be the owner of the house in which he/she is living.
HRA Exemption limit
HRA exemption amount is calculated on the basis of area or place in which such house taken on rent by the employee is situated. Actual amount of HRA exemption shall be least of following:
- Actual HRA received by the employee during the period he/she was living in rented house in the previous year.
- Rent paid by the employee minus ten percent of basic salary.
- 50% of the basic salary if rented house is in metro city or 40% of basic salary if rented house is in non-metro city.
Here basic salary is basic+DA+commission on sale at fixed rate.
Deduction of Rent for self-employed and those not receiving any HRA
Section 80GG of Income Tax Act provide for deduction of any rent paid by a person from his total income which reduces his/her tax liability. For claiming the deduction under this section following conditions must be satisfied:
- The assessee or his spouse or minor child or HUF of which he is a member does not own a residential house at the place where the assessee currently residing or performing duties of his office or employment or carries on his business or profession;
- The assessee does not own a residential house at any other place which is self-occupied.
- The assessee is self-employed or salaried.
- If salaried, the assessee is not receiving any HRA from employer.
To claim deduction under this section the assessee is required to file form 10BA containing details of payment of rent.
Eligible Rent deduction amount: Maximum deduction in respect of rent paid by the assessee shall be least of the following:
- Five thousand Rupees Per Month.
- twenty-five percent of total income of the assessee for the year.
Quick FAQ and notes
What if I forget to submit my rent receipts to my employer?
You can claim HRA exemption while filing your Income Tax Return.
Can I claim HRA exemption if I am paying rent to my spouse (Husband/Wife)?
No, it is not allowed as per the provisions of Income Tax.
Do I need to upload any document with my Income Tax Return for claiming HRA exemption?
No, but it is advisable to keep relevant documents handy in case you receive any notice from tax authority.
Can I claim HRA exemption if I am paying rent to my parents?
Yes, you can claim HRA exemption while paying rent to your parents. You may execute a rent agreement with your parents and get rent receipts signed from them to avoid any tax litigation.
What are the documents required for claiming HRA exemption?
- Rent Agreement
- Rent Receipts
- Pan of landlord if annual rent is more than one lakh rupees.
Click here to File your Income Tax Return
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Last Date for Filing Income Tax Return of Private Limited Company for Financial Year 2017-18 is 30th September, 2018
Last Date for Filing Income Tax Return of Private Limited Company for Financial Year 2017-18 is 30th September, 2018
All companies registered in India are required to file income tax return on or before the 30th of September. Companies Incorporated During the 1st of Jan 2018 to March 2018 is also required to file within 30th Sept 2018.
Private Limited Company Registration in Jaipur