Updates for Rising Chartered's

How much gold u can keep at Home:

India's infatuation with gold has been there for a long time and over the years it has only grown stronger. No wonder, Indians consume the most gold globally. Real estate and gold make up almost two-thirds of Indian household savings. For Indians, gold is considered more than an investment. Hence, it has found a significant place in their homes.

However, according to the Income Tax rules, there is a limit on how much gold one can keep at home. Kapil Rana, Founder, and Chairman, HostBooks Ltd, says, 'For storage of household gold no justification is needed on one's income status if the parameters mentioned for different categories of people such as individuals like married women, unmarried women, and a male member of the family are fulfilled.'

A married woman can hold up to 500 grams of gold, whereas, an unmarried woman can hold up to 250 grams of gold, even if they fail to produce their income proof. Male members are allowed to hold only 100 grams of gold without justifying their income status.

Hence, the Income Tax Department will not seize jewelry and ornaments to the extent of 500 gms for married lady, 250 gms for unmarried lady, and 100 gm for the male member, even if the same does not seem to be matching with the income record of the assessee.

In a Central Board of Direct Taxes (CBDT) press release dated December 1, 2016, it was clarified that there is no limit on holding of gold jewelry or ornaments by anybody provided it is acquired from explained sources of income, including inheritance. Hence, the Income Tax Act does not prescribe any limit for holding gold and ornament by any person, given you are able to show/explain valid sources of the gold acquired.

What happens if you keep gold beyond such limits at home

As long as you are able to provide the source of acquisition of gold or jewelry, there is no limit for holding gold jewelry or ornaments by anybody. In other words, if that individual person keeps gold beyond such limits at home then he/she should be able to explain the source of income from which the gold is being acquired.

In case, if the holding is in excess, one has to consider for the source of income, proof of investment will help you in establishing the source of investment against your income tax return. Apart from the tax invoices that you would keep, it is a little tricky that what kind of proof is necessary in case of inheritance and gifts. To specify more, experts suggest, in case of inheritance or gift, details like a gift deed or receipts with the name of the initial owner of the item may be needed, or one can produce a family settlement deed, Will, or a special gift deed stating the transfer of such item in the owner's hand.

*S-194-O Payment of certain sums by e-commerce operator to e-commerce participant*

Where Sale of goods or provision of services of an e-commerce participant is facilitated by an e-commerce operator through its digital or electronic facility or platform (by whatever name called),

such e-commerce operator shall, at the time of credit of amount of sale or services or both to the account of an e-commerce participant or at the time of payment thereof to such e-commerce participant by any mode, whichever is earlier,

deduct income-tax at the rate of 1% of the gross amount of such sales or services or both.

*Explanation*
For the purposes of this sub-section, any payment made by a purchaser of goods or recipient of services directly to an e-commerce participant for the sale of goods or provision of services or both, facilitated by an e-commerce operator, shall be deemed to be the amount credited or paid by the e-commerce operator to the e-commerce participant and shall be included in the gross amount of such sale or services for the purpose of deduction of income-tax under this sub-section.

No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of an e-commerce participant, being an individual or HUF, where the gross amount of such sale or services or both during the previous year does not exceed Rs. 5 Lakhs and such e-commerce participant has furnished his PAN/ AADHAAR to the e-commerce operator.

A transaction in respect of which tax has been deducted by the e-commerce operator or which is not liable to deduction under this section, shall not be liable to tax deduction at source under any other provision of this Chapter.

For the purposes of this section, e-commerce operator shall be deemed to be the person responsible for paying to e-commerce participant.

*electronic commerce* means the supply of goods or services or both, including digital products, over digital or electronic network;

*e-commerce operator* means a person who owns, operates or manages digital or electronic facility or platform for electronic commerce;

*e-commerce participant* means a person resident in India selling goods or providing services or both, including digital products, through digital or electronic facility or platform for electronic commerce;

*services* includes "fees for technical services" and fees for "professional services", as defined in the Explanation to section 194J.

*RECAP on S-80D of IT Act, 1961*

Amount paid (in any mode other than cash) by an individual or HUF

- to LIC/ other insurer for health insurance of specified person*.
- to the Central Government health scheme and/or on account of preventive health check-up.

*Deduction Allowed:-*

*In case of Individual, amount paid:*

a) For self, spouse and dependent children: Rs. 25,000 (Rs. 50,000 if specified person is a senior citizen)

b) For parents: additional deduction of Rs. 25,000 shall be allowed (Rs. 50,000 if parent is a senior citizen)

*In case of HUF*, premium up to Rs. 25,000 (Rs. 50,000 if person insured is a senior citizen) paid to insure any member of the family.

*specified person means:-

- In case of Individual- Self, Spouse, dependent children or parents

- In case of HUF- Any member thereof

*Note:-*

1. Deduction for preventive health check-up shall not exceed in aggregate Rs. 5,000.

2. Payment on account of preventive health check-up may be made in cash.

3. Within overall limit, deduction shall also be allowed upto Rs. 50,000 *towards medical expenditure* incurred on the health of specified person provided such person is a senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person.

4. "Senior citizen" means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.

*TDS on Cash Withdrawals!! All about S-194N of IT Act, 1961*

Payer - Banking Company, Co-op. Society or Post Office.

Payee - Any Person {including NR}

Type of Payment - Cash withdrawn from one or more accounts maintained

Time of Deduction - Payment of cash

TDS Rate - 2 % of amount in excess of limit
Limit > 1,00,00,000 {1 Crore}

Recipient who has not filed R.O.I. for all of the 3 AY’s relevant to 3 PY’s, for which the time limit to file R.O.I. u/s. 139(1) has expired, immediately preceding the PY in which cash is withdrawn. The provisions will be modified as below –

Limit > 20,00,000 {20 Lakhs}
Upto 20,00,000 - No TDS
> 20,00,000 and < 1,00,00,000 - 2% TDS
> 1,00,00,000 - 5% TDS
Effective from On or after 01.07.2020

The limit of Rs 1 crore has to be seen for cash withdrawals made from all branches of a bank.
The cash withdrawals from two different banks shall not be aggregated for the limit of ₹ 1 Crore.

No TDS on payment made to Central or State Government/ Banks/ Co-op. Banks/ Post Office/ Banking correspondents/ ATM operators/ Commission agent or trader, operating under Agriculture Produce Market Committee (APMC)

List of relatives covered Section 56(2)(VII) of the Income Tax Act,1961. As per Section 56(2)(VII) if any gift received from relative which are covered under following list will be exempt in the hands of receiver.

*TCS Provision on Sale of Goods - RECAP*

```S-206C(1H) of IT Act, 1961```

Seller receiving consideration for sale goods of value exceeding Rs. 50 L in any PY

*Other than*
1. goods exported
2. goods covered in sub-section (1) , (1F) , (1G)

shall, at the time of receipt of such amount, *collect from the buyer*, a sum equal to 0.1 % of the *sale consideration exceeding Rs. 50 L as income-tax*

Providing PAN/ AADHAAR to seller is Compulsory

*IF NOT:-*
TCS should be collected @ 1% (S-206CC)

*Non – Applicability:*
If buyer is liable to TDS under any other provision of this Act on the goods purchased by him from the seller and has deducted such amount.

*Explanation:*

*Seller* means:

Person whose *Turnover from the business exceed Rs. 10 Cr during FY immediately preceding FY* in which the sale of goods is carried out

(Not being a person as the CG may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein)

*Buyer Excludes:*

1. CG, SG, an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; or
2. Local Authority
3. Person importing goods into India or any other person as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein.

*RECAP on Compulsory Maintenance of books of account - Business or profession*

```S-44AA of IT Act, 1961```

*PART-A*
Persons carrying on *specified profession* shall maintain records if the gross receipts exceeds/ likely to exceed Rs. 1.5L in 3 preceding years for an existing profession.

*Specified Professions:*
• Legal
• Medical
• Engineering
• Architectural
• Interior decoration
• Accountancy
• Technical consultancy
• Film artists (includes a producer, editor, actor, music director, dance director, art director, cameraman, singer, lyricist, story writer, screenplay, costume designer, or dialogue writer)

*PART-B*
Every person carrying on business or profession [other than above] shall maintain BOA enabling AO to compute his TI if:

(i) his PGBP exceeds Rs. 1.2L (Rs. 2.5 L for I/HUF) or his T/O exceeds Rs. 10 L (Rs. 25L for I/HUF) in any one of the 3 years immediately preceding the PY; or

(ii) where the business or profession is newly set up in any PY, if his PGBP is likely to exceed Rs. 1.2L (Rs. 2.5 L for I/HUF) or his T/O is likely to exceed Rs. 10 L (Rs. 25L for I/HUF) during such PY; or

(iii) where Profits under S-44AE/ S-44BB/ S-44BBB has claimed to be lower than the profits deemed to be the profits and gains of his business during such PY; or

(iv) where the provisions of of S-44AD (4) are applicable and his income exceeds the maximum amount which is not chargeable to income-tax in any PY

*Penalty of Violation: Rs. 25,000 (S-271A)*

ITR filing of deceased person: Documents required, steps to be taken by legal heirs

If a legal heir does not file the ITR of a deceased person before the expiry of deadline, then he may have to face severe consequences for non-compliance.

According to the Income Tax Act, 1961, every individual whose total income exceeds the basic exemption limit is liable to file the relevant ITR.

Ideally, the legal heir who would be required to file the ITR would be determined in accordance with the Will, if any, made by the deceased.

In the absence of any Will, spouse or any of the children (i.e., surviving family members) may be considered as the legal representative and as such, any one of them can opt to file the return.

Even after death, a person cannot be absolved of his tax liability. The legal heirs of such deceased person are required to pay the tax dues and may be subjected to interest and/or penalty in case of non-payment of the tax due and/or not filing the ITR of the deceased. That is, if the legal heir does not file ITR of the deceased, then the former will face penal consequences. Thus, it is important that the legal heirs should be aware of their responsibility of filing the income tax return (ITR) pertaining to the settlement of such dues of the deceased taxpayer.

According to the Income Tax Act, 1961, every individual whose total income exceeds the basic exemption limit is liable to file the relevant ITR. The provisions also state that even if an assessee's total income does not exceed the basic exemption limit, he/she still needs to file the ITR for that particular year if he/she has:

,∆∆ Deposited an aggregate amount exceeding Rs 1 crore in one or more current account maintained with a bank or co-operative Bank in the financial year; or

∆∆ Spent more than Rs 2 lakh on foreign travel for himself or any other person in the financial year; or

∆∆ Incurred more than Rs 1 lakh towards consumption of electricity in the financial year.

Who is responsible for filing ITR of the deceased?

Ideally, the legal heir who would be required to file the ITR would be determined in accordance with the Will, if any, made by the deceased. In the absence of any Will, spouse or any of the children (i.e., surviving family members) may be considered as the legal representative and as such, any one of them can opt to file the return.

As per the law, in the case of a deceased person who has expired during the year, the responsibility for filing the return till the date of death shall be that of the legal heir. However, for remaining period of the financial year (i.e., post-death), the responsibility for filing return shall be on the executor of the estate of deceased till the time assets under the estate are distributed to the legal heir/s. For instance, if Mr X dies on November 03, 2020 and is survived by his son say Mr Y, the income tax return with respect to Financial Year 2020-21 (Assessment Year 2021-22) would be filed as follows:

The ITR for income from the beginning of the financial year i.e. 1st April 2020 to November 03, 2020 would be filed by Mr. B as legal heir of Mr. A.

The ITR for any income accruing or arising on or after November 03, 2020 would be filed separately by the executor of the estate. The liability of the executor to file the return is only until the legal transfers are carried out. Once the assets are distributed, the legal heir would be liable to file the tax return

The legal heir will have to file returns and pay taxes in respect of the estate of the deceased, which are in or may come into his possession, i.e., he/she may inherit from the deceased person. Also, the legal heir will inherit all the liabilities of the deceased and will be held liable in the future for any proceeding initiated against the deceased before his death. Do keep in mind that the legal heir will be liable only to the extent of the assets inherited from the deceased.

Income of deceased person

It is important to note that all the income which is accrued or received from beginning of the financial year till the date of demise will be considered as the income of the deceased person. Further, tax on any income accrued or received from the assets that are inherited from the deceased will be borne by the legal heir himself. This would mean that after receiving the inheritance, any income accrued or received from the asset will be considered as the legal heir's own income.

What if legal heir does not file ITR?
If a legal heir does not file the ITR of a deceased person before the expiry of deadline, then he may have to face severe consequences for non-compliance. It may include penalty.

Documents required to file deceased's ITR
In order to register as a legal heir following documents are to be uploaded on the income tax e-filing portal:

∆∆Copy of PAN of the Deceased

∆∆Copy of PAN of the Legal Heir

∆∆Copy of the Death Certificate

∆∆Copy of any one of the legal heir proof from the below list:

*Legal Heir Certificate issued by Court of Law /Local Revenue Authority.
*Surviving family member certificate issued by the Local Revenue Authority.
*Family Pension certificate issued by Central/State Government.
*Registered will.
*Letter issued by the banking or Financial Institution in their letterhead, with official seal and signature mentioning the particulars of nominee or joint account holder to the account of the deceased at the time demise.

Copy of the order passed in the name of the deceased (Mandatory only if the reason for registration is 'Filing of an appeal against an order passed by tax department in the name of deceased')

Copy of the order/notice (Mandatory only if the reason for registration is 'Filing of return of income/form for period in which deceased was alive through condonation request' (or) 'A notice/order received from Income Tax Department in the name of the applicant for compliance on behalf of a deceased')

Copy of Indemnity Letter. This letter guarantees that payment of all tax claims made with the tax department would be indemnified by the legal heir/s filing the return. In layman terms, the legal heir/s are providing guarantee for the payment of the tax dues of the deceased to the tax department by way of such indemnity letter

Process of filing ITR by the legal heir
In order to file the ITR of the deceased in the capacity of a legal heir, the first step is to register oneself as a legal representative of the deceased person on the income tax E-filling Portal

The 'Reason for Registration' of the legal heir as a representative assessee should be mandatorily provided. The legal heir may choose amongst one of the following reasons:

1. Filing of an appeal against an order passed in the name of deceased
2. Submit service request such as refund re-issue/recti?cation etc. of proceedings concluded in the name of deceased
3. Filing of return of income/form of period in which deceased was alive through condonation request
4. A notice/order received from Income Tax Department in the name of the applicant for compliance on behalf of a deceased
5. Others
Once one has registered as a legal heir, a request will be sent to the e-Filing Admin for approval. The e-Filing Admin will check the authenticity of the request details and may Approve/Reject the request. Upon Approval/Rejection, an e-mail and SMS will be sent to the legal heir who raised the request.

In case of the request being rejected, the intimation for rejection would be accompanied by a valid reason for such rejection. For instance, upload of incorrect information or documents, etc.

After registering as a legal heir, ITR can be filled in the normal format.

THANKs.

*GST UPDATES*

Blocking of E-Way Bill (EWB) generation facility resume after 15th August, 2021.

Facility of blocking E way bill generation had been temporarily suspended due to pandemic in two specific cases only.
Taxable person fails to file their return in Form GSTR-3B for a consecutive period of two months; or
Taxable person fails to file their return in a statement in CMP-08, for a consecutive period of two Quarters.

Government has now decided to resume the blocking of EWB generation facility on the EWB portal, for all the taxpayers from 15 August, 2021.

*Compilation of Beneficial Schemes for CAs by ICAI*

https://drive.google.com/file/d/1TkjHVngplCxpoYZI6gKbF3u2KfmHVWVL/view?usp=drivesdk

CMP Benifits.pdf

All TDS/TCS returns filed at New ITD portal before 3rd July,2021has been rejected due to incorrect version (5.1) mentioned at ITD website.

ITD has now corrected the version to 7.1 Kindly efile your tds/tcs returns again. Ignore this if efiled your TDS/TCS returns at NSDL-TIN FC

The Income Tax E-Filing Portal to be non-functional during 1-6 June, 2021.

New income tax e-filing portal www.incometax.gov.in is to be launched on 7th June 2021.

www.incometax.gov.in

Following due dates have been extended as far as income tax compliances for AY 2021-22 are concerned :

1. Due date for TDS return quarter 4 for FY 20-21 is 30th June 2021 earlier it was 31st May 2021

2. Due date to file return of income u/s 139(1) has been extended to 30th September 2021 for those assesses who were supposed to file return of income on or before 31st July 2021 (Non Audit Cases)

3. Due date to file return of income u/s 139(1) has been extended to 30th November 2021 for those assesses who were supposed to file return of income on or before 31st October 2021 (Audit Cases)

4. Due date to file return of income u/s 139(1) has been extended to 31st December 2021 for those assesses who were supposed to file return of income on or before 30th November (Transfer Pricing Cases)

5. The due date to file tax audit report has been extended to 31st October 2021 for those assesses who were supposed to file tax audit report on or before 30th September 2021.

6. Due date to file report under section 92E has been extended to 30th November 2021 for those assesses who were supposed to file on or before 31st October 2021.

7. Due date to furnish belated or revised return of income which was supposed to be filed by 31st December 2021 under 139(4)/139(5) has been extended to 31st January 2022.

8. SFT for financial year 2020-21 has been extended to 30th June 2021 which was supposed to be filed on or before 31st May 2021

2021-22 Begins Next Day, Dos..

Income Tax

1. PAN if not linked with Adhaar by 31 March’2021 shall remain inoperative till such period, it is linked. Inoperative PAN means TDS will be deducted at higher rates, ITR cannot be filed and penalty of 10,000/- may be imposed.

2. 31.03.2021 is last date to file/revise ITR of FY 2019-20.

3. 31.03.2021 is last date of investments for deduction u/s 80C or 80D etc for FY 2020-21.

4. 31.03.2021 Is last date to file Q1 & Q2 TDS Returns of FY 2020-21 without Late Fee.

5. Next Year wef 01.07.2021 TDS @ 0.1% will have to be paid on Purchases of more than 50 Lacs if Turnover in FY 2020-21 exceeded 10 Crore. u/s 194Q.

6. Charitable Institutions/Trusts already registered with Income Tax Deptt will have to re-register themselves in 2021-22.

7. Income Tax Audit will not be required for FY 2020-21 for persons having turnover up to 10 Crores if Cash Component does not exceed 5% of total Receipts/Payments. Payments received or made by cheque other than Account Payee Cheques will be counted as cash component

8 ITR of FY 2020-21 can not be filed after 31.Dec’21. ( means 3 months lesser period made available next year )


GST

1. Existing LUT for export without payment of IGST expires on 31.03.2021. Seek renewal for 2021-22.

2. Those who want to opt in or opt out of QRMP scheme for Q1/2021-22 can do so by 30.04.2021.

3. 31.03.2021 is last date of GST Audit and filling Annual Return of 2019-20. This Year’s Finance Bill has scrapped Sec 35(5). GST Audit, therefore stands abolished for coming years.

4. Those willing to shift to Composition Scheme for 2021-22 can do so by filling CMP 02 by 31.03.2021.

5. E-Invoicing made mandatory wef 01.04.2021 for dealers with Annual Turnover of 50 Cr or more in any preceding Year. Those buying from such dealers without E-Invoice will loose Input Tax Credit on such purchases.

6. Till now HSN code was not mandatory for dealers up to 1.5 Cr. 2/4 Digits HSN was required from others. Wef 01.04.2021 4 digits HSN has been made mandatory for dealers having Turnover up to 5 Cr in 2020-21 for B2B transactions. 6 Digits HSN is mandatory for others both for B2B & B2C transactions. Export Invoices will have 8 digits HSN as per the requirement of FTP (Foreign Trade Policy). HSN details will have to be given in GSTR1 also. Those who do not follow new HSN rules, will face penalty of 50,000.00 u/s 125 alongwith other liabilities.

7. QR code for B2C transactions for dealers having turnover more than 500 Cr in any preceding year is mandatory wef 01.04.2021.

Companies Act

Every Company which uses software to maintain its accounts, shall use such accounting software which has edit log of each and every transaction, every change made in books of accounts along with the date when such changes were made and ensuring that audit trail cannot be disabled. (Applicable from 01.04.2021)

Press Note issued by CBIC stating that they have not asked Departmental Officer's to ask Assesse not to claim ITC & make payment in Cash

E-invoicing will be implemented to businesses with an aggregate turnover exceeding Rs. 50 crore from 1st April2021 vide NN 5/2021 dated 8th March 2021

Current Limit is Rs 100 crores

Finance Minister launches “Union Budget Mobile App”

Union Budget 2021-22 which will be presented on 1st February 2021 will be the first budget in the history of India in the paperless form. Union Finance Minister Nirmala Sitharaman has launched a mobile application named “Union Budget Mobile App” which will provide quick easy and hassle-free access to Union Budget information to all stakeholders.

Union Budget Mobile App:-
- To download the App go to the Union Budget Web Portal (www.indiabudget.gov.in).

- The App has been developed by the NIC (National Informatics Centre)

- The App will be available on both Android and iOS platforms.

- The App will be available in English as well as Hindi language

- The App will have features of downloading, printing, searching, zooming in and out, bidirectional scrolling, table of contents and external links, etc.

- The App will provide complete access to 14 Union Budget documents including the Annual Financial Statement (commonly known as Budget), Demand for Grants (DG), Finance Bill etc. as prescribed by the Constitution.

- The Budget documents will be made available on the Mobile App after the Finance Minister completes the Budget Speech in the Parliament.

Union Budget

Two new options added under Form DRC 03

1. Tax Liability for difference between GSTR 1 and GSTR 3B.
2. Tax payment on ITC mismatch.