1.Extension of due dates for filing income tax return announced amid uncertainties surrounding Covid-19:

 

Income Tax Authorities have decided to further extend the last date for filing income tax return for Financial Year (FY) 2018-19 to 30th September, 2020.

2. Self-assessment tax paid by individuals within due date to be considered as advance tax:

 

Individuals resident in India whose age is 60 or more and who do not have income from business or profession, if they have paid self-assessment tax within the due date (before extension) of filing income tax return for FY 2019-20, the tax paid by them shall be deemed to be advance tax.

3. One-time relaxation for verification of income tax returns for various assessment years:

 

A taxpayer is required to verify the income tax return within 120 days from the date the return is uploaded. A large number of filed income tax returns are pending with the income tax department for want of valid acknowledgment of the income tax return. In order to resolve the grievances of the taxpayers, income tax department has come out with a one-time measure to verify the returns filed electronically by the taxpayers. In case of income tax returns for assessment years (AY) 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20 which were uploaded electronically by the taxpayer within the return filing due date and which have remained incomplete or unprocessed since the returns were not verified, authorities have permitted verification of such returns if the taxpayers either send a duly signed physical copy of the acknowledgment of the income tax return filed or electronically verify the same by 30th September, 2020.

4. New Form 26AS to bring in transparency and accountability:

 

Information received by the income tax department from filers of Specified Financial Transactions (SFTs) will now be shown as Part E of Form 26AS.This information will help taxpayers recall all the major financial transactions while filing their income tax returns. New Form 26AS shall display different fields such as type of transaction, name of SFT filer, date of transaction, single/joint party transaction, number of parties, amount, mode of payment and remarks, etc.

5. Exemption to provisions of tax deducted at source to various parties on withdrawal of cash from bank/post office:

 

Banking companies, cooperative societies in the business of banking or post offices have to deduct tax at source (TDS) on making payment in cash to a recipient exceeding Rs. 1 crore in aggregate during a financial year from one or more accounts maintained by such recipient. Following persons or class of persons are exempted from such TDS:

• Cash Replenishment Agencies (CRAs) and franchise agents of White Label Automated Teller Machine Operators for the purpose of replenishing cash in ATMs operated by these entities subject to conditions.
• Commission agent or trader operating under Agriculture Produce Market Committee (APMC) and registered under any law relating to Agriculture Produce Market of the concerned State.
• The authorised dealer and its franchise agent and sub-agent and Full Fledged Money Changer (FFMC) licensed by the Reserve bank of India (RBI) and its franchise agent for the purposes of –
  • - Purchase of foreign currency from foreign tourists or non-residents visiting India or from resident Indians on their return to India, in cash as per the directions or guidelines issued by RBI; or
  • - Disbursement of inward remittances to the recipient beneficiaries in India in cash under Money Transfer Service Scheme (MTSS) of the RBI.

6. Utility to determine TDS rate applicable on cash withdrawals:

 

Income tax department has come out with a new functionality for banks and post offices through which they can ascertain TDS applicability rates on cash withdrawal of above Rs. 20 Lakhs in case their customer is a non-filer of income tax return and above Rs. 1 crore in case the customer is a filer of income tax return. Banks or post offices will only have to enter the PAN of the person who is withdrawing cash for ascertaining the applicable rate of TDS.

7. Memorandum of Understanding signed between CBDT and SEBI:

 

A Memorandum of Understanding (MOU) was signed between Central Board of Direct Taxes (CBDT) and Securities & Exchange Board of India (SEBI) for exchange of data between the two organizations. The MoU will facilitate the sharing of data and information between SEBI andCBDT on an automatic and regular basis. In addition to regular exchange of data, SEBIand CBDT will also exchange with each other, on request and suo moto basis, anyinformation available in their respective databases, for the purpose of carrying out theirfunctions under various laws.

8. Memorandum of Understanding signed between CBDT and CBIC:

 

An MOU was signed between CBDT and Central Board of Indirect Taxes and Customs (CBIC) for exchange of data between the two organizations. The MoU will facilitate the sharing of data and information between CBICandCBDT on an automatic and regular basis. In addition to regular exchange of data, CBIC and CBDT will also exchange with each other, on request and suo moto basis, anyinformation available in their respective databases, for the purpose of carrying out theirfunctions under various laws.

9. Memorandum of Understanding signed between CBDT and MoMSME:

 

An MOU was signed between CBDT and Ministry of Micro, Small and Medium Enterprises (MoMSME) for sharing of data by CBDT to MoMSME. The MoU will facilitate seamless sharing of certain incometax return related information by the Income Tax Department to MoMSME. This data will enable MoMSME to check and classify enterprises in Micro, Small and Medium categories as per the criteria.

1.   Clarification on chargeability of GST on remuneration to directors:

 

Chargeability of GST has been examined under the following two categories:

• Leviability of GST on remuneration paid by companies to the independent directors or directors who are not the employees of the company – Directors who are not employees of the company, the services provided by them in lieu of remuneration as consideration for service provided is taxable under GST law. The recipient of the services i.e. the company is liable to discharge the applicable GST on reverse charge basis.
• Leviability of GST on remuneration paid by companies to the whole-time directors including managing director who are employees of the company – Once it has been ascertained that a director is an employee of the company, it would be pertinent to examine whether all activities performed by the director are in the course of employer-employee relationship or is there any element of contract for service. It is clarified that part of director’s remuneration which is declared as salary in the books of the company are not taxable under GST. Part of director’s remuneration which is declared as other than salaries is taxable under GST law. The recipient of the services i.e. the company is liable to discharge the applicable GST on reverse charge basis.

2.   Extension of filing GST return for Composition Dealers:

GST authorities have decided to extend the due date for filing GST return applicable to composition dealers for FY 2019-20 till 31st August, 2020.

1.    Extension of due date for filing Foreign Liabilities and Assets :

 

An annual return called Foreign Liabilities and Assets (FLA) has to be filed with the RBI. It is applicable to all Indian companies including Limited Liability Partnerships (LLP) that have received Foreign Direct Investment (FDI) or have made Overseas Direct Investment (ODI). The due date for filing the same is usually 15th July but it has been extended to 14th August, 2020 this year amid uncertainties surrounding Covid-19