Ghaziabad Chapter of NIRCof ICSI
ICSI-NIRC Ghaziabad Chaptere-Newsletter
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 01
Ghaziabad ChapterOf NIRC Of ICSI
ChairmanCS Arjunn Kumar
TyagiVice Chairperson
CS Sonal JainSecretary
CS Pooja BhasinMembers
CS Charu GuptaCS Aarti Jain
CS Sakshi MittalCS Nimisha Madan
Editors for this issueCS Arjunn Kr. Tyagi
CS Pooja Bhasin
Ghaziabad Chapter of NIRC of ICSI,
B-23, Nehru Apartment, Nehru Nagar,
Ghaziabad – 201 001Tel: 0120-4559681
Email ID: [email protected]
Chapter Office StaffMr. Vinay Kumar
Mr. Anil UpadhyayMr. Rahul Verma
From the Desk of the Chairperson,Ghaziabad Chapter of NIRC of ICSI
The person can become
whatever, if he reflects on the
desired object with confidence.
― Bhagavad Gita
Dear Readers,
I hope this newsletter receives
you in good health of you and
your family. My biggest gratitude
goes to the team of Ghaziabad
Chapter of NIRC of ICSI for
believing and having faith on me. I
pay my sincere gratitude to the
entire team of Ghaziabad Chapter
for the hard work and dedication
they have shown in this difficult
time of global pandemic for
efficient working of chapter.
It is a matter of great pleasure
and satisfaction that our chapter
has took initiatives towards
conducting member student
interaction by digital means and
have conducted meetings through
video conference and seminars
through webinars. We have put
our sincere efforts to keep both
members and students updated
and have selected topics which
will help members especially the
young members to cope with this
pandemic effectively on
professional front and bring
changes in their professional lives
to meet the emerging challenges.
“To succeed in your mission, you
must have single-minded
devotion to your goal.”
-A. P. J. Abdul Kalam
JULY 2020
**********************
GHAZIABAD CHAPTER E-NEWSLETTER Page 02
Our chapter also conducted webinars on regular
basis during the month. Webinars in topics such as
Reinventing the Profession after Lockdown by CS
Richa Sharma, Decriminalizing of offences by CS
Deepak Sharma etc were conducted which were
found useful by the members.
As we all know July of every year is celebrated as
Students Month, keeping this in mind we have
conducted various activities viz. Essay writing
competition, quizzes, webinars on topics of
students interest, felicitation of students securing
good marks in previous examination etc. were
conducted by the Chapter. Students took keen
interest and actively participated with full zeal in
these activities, we strive to continue such
activities in future as well.
.“The highest result of education is tolerance”. -
Hellen Keller
Lastly will like to extend my wishes to all the
students taking CSEET examination in August
2020.
Happy ReadingYours Sincerely,
CS Arjunn Tyagi, ChairpersonGhaziabad Chapter of NIRC of ICSI
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 03
Ghaziabad chapter management committee express its gratitude towards CORONA WARRIORS - DIL SE THANK YOU
S. No Particulars Page No.1. Chairperson’s Message 012. Past Events Photographs 042. Members & Students Corner
(i) Covid-19: Right Time To Buy Dream Home By CS Suman Goyal 12(ii) Compounding Under FEMA by CS Mohit Singh Kharayat 15(iii) Corporate Social Responsibility(CSR)- Post Amendments & In
Pandemic(covid-19) Scenario by CS Kamal Nath Thakur 19(iv) What Taxes Shall You Pay For The Financial Year 2019-20?
by CS Ujjwal Jindal 21(v) Stamp Duty On Transfer Of Shares In Dematerialized Form
by CS Ravi Garg 323. Corporate Compliance Calendar by CS Lalit Rajput 354. Future Events of Ghaziabad Chapter of NIRC of ICSI 745. Rules for the Articles of e-Newsletter 756. Health Initiatives 76
INDEX
GHAZIABAD CHAPTER E-NEWSLETTER Page 04
Webinar organized by Ghaziabad Chapter of NIRC of ICSI on “Reinventing the Profession after Lockdown” on July 15, 2020
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 05
Webinar organized by Ghaziabad Chapter of NIRC of ICSI on “De criminalising of Offences” on July 30, 2020
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 06
Ghaziabad Chapter of NIRC of ICSI celebrated Student Month and organized various activities during July, 2020
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 07
Ghaziabad Chapter of NIRC of ICSI celebrated Student Month and organized various activities during July, 2020
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 08
Ghaziabad Chapter of NIRC of ICSI celebrated Student Month and organized various activities during July, 2020
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 09
Ghaziabad Chapter of NIRC of ICSI celebrated Student Month and organized various activities during July, 2020
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 10
Ghaziabad Chapter of NIRC of ICSI celebrated Student Month and organized various activities during July, 2020
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 11
JULY 2020
Ghaziabad Chapter of NIRC of ICSI celebrated Student Month and organized various activities during July, 2020
CS Suman GoyalPracticing Company Secretary
COVID-19: RIGHT TIME TO BUY DREAM HOME
JULY 2020
Covid-19 pandemic has dipped the Indian economyon very high and few sectors like Tourism, Banking,Real Estate are in danger zone. However, theGovernment and RBI has come out with variousperquisites for Homebuyers to boost the RealEstate and Banking Sector like:
• Reduction in CRR and SLR, which has caused toreduce the bank loan interest rate; and
• Extension in the Pradhan Mantri Awas Yojana(PMAY) for MIG-I and II categories peoples.
Now, the Homebuyers have four reasons to buytheir dream home:
1. HOME LOAN RELIEF: Without talking toomuch, let’s try to understand with thefollowing examples:
HDFC Bank
GHAZIABAD CHAPTER E-NEWSLETTER Page 12
Bank home loan interest rate has reduced
Last date of PMAY for MIG category increased upto March, 2021
Attractive GST rate
Various income tax reliefs under the Income Tax Act, 1961
Interest @
8.05%
(before
lockdown)
Current interest @
6.95%
(due to Covid)
Loan
amount
Rs. 25 Lakhs Rs. 25 Lakhs
Duration 20 Years 20 YearsMonthly
EMI
Rs. 20,987 Rs. 19,308
Total savings in monthly EMI: Rs. 1,679/-
Total savings in EMI (yearly): Rs. 1,679 * 12 = Rs.
20,148/-
State Bank of India
Interest @
7.95%
(before
lockdown)
Current interest
@ 6.95%
(due to Covid)
Loan
amount
Rs. 25 Lakhs Rs. 25 Lakhs
Duration 20 Years 20 YearsMonthly
EMI
Rs. 20,833 Rs. 19,308
Total saving in monthly EMI: Rs. 1,525/-
Total savings in EMI (yearly): Rs. 1,525 * 12 =
Rs. 18,300/-
Note: Interest rate has taken out from therespective bank website.
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 13
2. PMAY RELIEF: “Housing for All” Mission toprovide central assistance in the form ofinterest subsidy on housing loans foracquisition/ construction of houses forEconomically Weaker Section (EWS), LowerIncome Group (LIG) and Middle Income Group(MIG). Previously, last date for MIG Categorywas 31st March, 2020. Now, the Governmenthas extended the scheme for MIG Category upto 31st March, 2021. MIG Category is dividedinto two category i.e. MIG-I and MIG-IICategory.
The key parameters for each categories are asfollows:
a) Beneficiary family should not own a puccahouse either in his/her name or in the nameof any member of his/her family in any part ofIndia.
b) Beneficiary family should not have availed ofcentral assistance under any housing schemefrom Government of India or any benefitunder any scheme in PMAY.
c) Beneficiary family will comprise husband,wife, unmarried sons and unmarrieddaughters. However, an adult earningmember and a married son or marrieddaughter shall be treated as a separatehousehold.
3. GST RATES: On the GST aspect, let’s try tounderstand the GST rates with the followingtable:
Particul
ars
EWS LIG MIG-I MIG-II
Family
Income
Rs. 0 to
Rs.
3,00,00
0
Rs.
3,00,00
1 to Rs.
6,00,00
0
Rs.
6,00,00
1 to Rs.
12,00,0
00
Rs.
12,00,0
01 to
Rs.
18,00,0
00
Max
Carpet
Area
(sq. m.)
30 60 160 200
Max
Subsidy
Rs. 2.67
lakh
Rs. 2.67
lakh
Rs. 2.35
lakh
Rs. 2.30
lakh
EXAMPLE: The borrower avails a loan for Rs. 25Lakhs and the subsidy works out to Rs. 2,35,000.The amount (Rs. 2,35,000) would be reducedupfront from the loan (i.e., the loan would reduceto Rs. 22,65,000) and the borrower would pay EMIson the reduced amount of Rs. 22,65,000.
However, the following things must be taken inmind before applying for PMAY:
Property
Type
GST rate till
March, 2019
GST rate from
April, 2019Affordable
housing*
8% with ITC 1% without ITC
Non-
affordable
housing
12% with ITC 5% without ITC
*Definition of affordable housing: Only thoseflats with the carpet area of 60 sq. m. in metroscities (i.e. Delhi-NCR, Bengaluru, Chennai,Hyderabad, Mumbai and Kolkata) and 90 sq. m. innon-metros cities falling under the Rs. 45 lakh capis affordable housing.
4. INCOME TAX ASPECTS: Interest payable onloans borrowed for the purpose of acquisitionor construction of housing property can beclaimed as deduction under section 24(b) ofthe Income Tax Act, 1961. However, totalinterest deduction cannot be more than Rs. 2lakhs.
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 14
Interest on pre-construction period: Interestpayable on loan for the period prior to the previousyear in which the property has been acquired orconstructed (pre-construction period) can beclaimed as deduction over a period of 5 years inequal instalments commencing from the year ofacquisition or completion of construction.Note: ‘Pre-construction period’ is the period priorto the previous year in which property is acquiredor construction is completed.
Interest for the year in which construction iscompleted/ property acquired: Interest relating tothe year of completion of construction/ acquisitionof property can be fully claimed in that yearirrespective of the date of completion/ acquisition.
For Example: Assume interest @ 7%.
a) Pre-construction
period
2 years (2020-21
& 2021-22)
Total interest:
Rs. 1,73,116
(2020-21)
+
Rs. 1,68,817
(2021-22)
= Rs. 3,41,933
Eligible deduction u/s 24(b)a) Eligible deduction of
interest in FY 2020-21
Not eligible Nil
a) Eligible deduction of
interest in FY 2021-22
Not eligible Nil
a) Eligible deduction of
interest in FY 2022-23
One-fifth of
interest paid for
the pre-
construction
period
+
Interest payable
in FY 2022-23
(Maximum
deduction: Rs. 2
lakhs)
68,387 [one-
fifth of the
amount refer in
point (c)]
+
1,64,206 [total
amount refer in
point (b)]
= Rs. 2,32,593
So, eligible
deduction for
FY 2022-23:
= Rs. 2,00,000/-
Conditionsa) Loan sanctioned 2020-21 Loan: Rs. 25
lakhsa) Completion of
construction
2022-23 Interest for FY
2022-23:
= Rs. 1,64,206
**********************
CS Mohit Singh Kharayat
COMPOUNDING UNDER FEMA
JULY 2020
INTRODUCTION
As per the Black’s Law Dictionary, to“Compound” means “to settle a matter by amoney payment, in lieu of other liability.” Thismeaning clearly defines the concept ofCompounding as a mechanism that provides theoffender an opportunity to avoid prosecutionfrom the offence committed by him after payingoff monitory payment.Compounding of an offense in the context of law
means an amicable settlement for the purpose ofpreventing prosecution for an offense, however,Compounding is not an inherent right butprovided/delegated by the respective Act underwhich the offence has been committed. Thus, theperson get acquittal of the offense he hascompounded.
BASIC CONCEPTS UNDER FEMA
1. As far as Foreign Exchange Management Act,1999 (FEMA), the provisions of section 15,permit compounding of contraventions andempowers the Reserve Bank of India(RBI) tocompound any contravention as definedunder section 13 of the FEMA, exceptcontraventions under section 3 (a) of FEMA,on an application made by the personcommitting such contravention.
1. Further, where a contravention has beencompounded as above, there cannot be anyfurther proceeding, initiating or continuing, asthe case may be, in respect of thecontravention so compounded.
2. The provisions of Section 13, provides that ifany person contravenes any provision ofFEMA, or any rule, regulation, notification,direction or order issued in exercise of thepowers under this Act, or contravenes anycondition subject to which an authorization isissued by the Reserve Bank, he shall, uponadjudication, be liable to a penalty up to thricethe sum involved in such contravention, wherethe amount is quantifiable or up to RupeesTwo lakhs, where the amount is not directlyquantifiable and where the contravention is acontinuing one, further penalty which mayextend to Rupees Five thousand for every dayafter the first day during which thecontravention continues.
3. Whereas, in exercise of the powers conferredby section 46 read with sub-section (1) ofsection 15 of FEMA, the Central Governmenthad made the Foreign Exchange(Compounding Proceedings) Rules, 2000relating to compounding contraventionsunder chapter IV of FEMA in the form ofMaster Direction which were effective from03.05.2000 however, since them the Ruleshave been amended many a times and thelast updating was done on April, 04, 2019.
POWER TO COMPOUNDIf any person contravenes any provisions of FEMA except clause (a) of Section 3 of that Act then the following authorities under RBI shall have power to entertain the Compounding application on the basis of monetary limits, which are as follows:
GHAZIABAD CHAPTER E-NEWSLETTER Page 15
JULY 2020
*Provided that no contravention shall becompounded unless the amount involved in suchcontravention is quantifiable.
Delegation of Powers to Regional Offices
As a measure of customer service and in order tofacilitate the operational convenience,compounding powers have been delegated to theRegional Offices of the Reserve Bank of India tocompound the following contraventions of FEMA,1999.
1. Delay in reporting inward remittancereceived for issue of shares.
2. Delay in filing form FC(GPR) after issue ofshares.
3. Delay in fining the Annual Return in respect ofthe Foreign Liabilities and Assets (FLAR).
4. Delay in issue of shares/refund of shareapplication money beyond 180 days, mode ofreceipt of funds, etc.
5. Violation of pricing guidelines for issue ofshares.
6. Issue of ineligible instruments such as non-convertible debentures, partly paid shares,shares with optionality clause, etc.
7. Issue of shares without approval of RBI orFIPB respectively, wherever required.
8. Delay in submission of form FC-TRS ontransfer of shares from Resident to Non-Resident or from Non-Resident to Resident.
9. Taking on record transfer of shares byinvestee company, in the absence of certifiedfrom FC-TRS.
10. Delay in reporting the downstreaminvestment made by an Indian entity or aninvestment vehicle in another Indian entity(which is considered as indirect foreigninvestment for the investee Indian entity interms of these regulations), to Secretariat forIndustrial Assistance, DIPP.
11. Delay in reporting receipt of amount ofconsideration for capital contribution andacquisition of profit shares by Limited LiabilityPartnerships (LLPs)/ delay in reportingdisinvestment/transfer of capital contributionor profit share between a resident and a non-resident (or vice-versa) in case of LLPs.
12. Gift of capital instruments by a personresident in India to a person resident outsideIndia without seeking prior approval of theReserve Bank of India.
PRE-REQUISITE FOR COMPOUNDING PROCESS
Following are pre-requisites those needs to beconsider before applying for Compoundingapplying with RBI:
1. No compounding of similar offence can bedone upto three years from the date on whicha similar contravention was compounded bythe applicant. However, any second orsubsequent contravention committed afterthe expiry of a period of three years from thedate on which the contravention waspreviously compounded shall be deemed tobe a first contravention.
1. Contraventions relating to any transactionwhere proper approvals or permission fromthe Government or any statutory authority
GHAZIABAD CHAPTER E-NEWSLETTER Page 16
S.
No.
Monetary Limit Manager of
RBI
1 Rs. Ten Lakh or less Assistant
General
Manager
2 more than Rs. Ten Lakh but
less than Rupees Forty Lakh
Deputy
General
Manager
3 Rs. Fourty Lakh or more but
less than Rs Hundred Lakh
General
Manager
4 Rs. One Hundred Lakh or
more
Chief General
Manager
JULY 2020
2. concerned, as the case may be, have not beenobtained, such contraventions would not becompounded unless the required approvals areobtained from the concerned authorities.
3. Cases of contravention, such as, those having amoney laundering angle, national securityconcerns and/or involving seriousinfringements of the regulatory framework orwhere the contravener fails to pay the sum forwhich contravention was compounded withinthe specified period in terms of thecompounding order, then such offence shallnot be dealt by RBI rather be referred to theDirectorate of Enforcement for furtherinvestigation.
PROCEDURE OF COMPOUNDING
1. All applications in the prescribed format andother mentioned documents for compoundingto submitted along with the prescribed fee ofRs.5000/- by way of a demand draft drawn infavour of “Reserve Bank of India” and payableat the concerned Regional Office and by way ofa demand draft drawn in favor of “ReserveBank of India” and payable at Mumbai for casessubmitted to the Compounding Authority.
2. On receipt of the application for compounding,the Reserve Bank shall examine the applicationbased on the documents and submissions madein the application and assess whethercontravention is quantifiable and, if so, theamount of contravention.
3. In case the application has to be returnedwhere required approvals are not obtainedfrom the authorities concerned or in case ofincomplete application or for any other reason,the application fees of Rs.5000/- received alongwith the application will be returned.
4. Then after entertaining the Compoundingapplication will be disposed off by theauthority within 180 days from the date ofreceipt of the completed application forcompounding.
5. It is not necessary to attend the hearing if theApplicant is not able to do so, and he cansubmit his written clarifications orsubmissions to the RBI and that shall have noadverse effect on the process or onCompounding fees to be levied by the RBI.
6. *The applicants are advised to give notice of,if any, in the address/ contact details of theapplicant during the pendency of thecompounding application with Reserve Bank.
QUANTITY OF PENALTY
The RBI is guided by the provisions of section 13of FEMA, whereby it is said that the amountimposed can be up to three times the amountinvolved in the contravention. However, theamount imposed is calculated on the basis ofguidance note which was given in initial circulerA.P. (DIR Series) Circular No. 73 dated May 26,2016 and which has been updated from time totime and which is also available on the RBI’swebsite for information of general public.However, the guidance note is only for thepurpose of indicating the basis on which theamount to be imposed is derived by thecompounding authorities. The actual amountimposed may sometimes vary, depending on thecircumstances of the case taking into account thefactors which are indicative in nature:
A. the amount of gain of unfair advantage,wherever quantifiable, made as a result of thecontravention;
B. the amount of loss caused to any authority/agency/ exchequer as a result of thecontravention;
GHAZIABAD CHAPTER E-NEWSLETTER Page 17
JULY 2020C. economic benefits accruing to the contravener
from delayed compliance or complianceavoided;
D. the repetitive nature of the contravention, thetrack record and/or history of non-complianceof the contravener;
E. contravener’s conduct in undertaking thetransaction and in disclosure of full facts in theapplication and submissions made during thepersonal hearing; and any other factor asconsidered relevant and appropriate.
Recent Development:
1. Public disclosure of Compounding Orders2. For disseminating the information pertaining to
compounding orders, it has been decided tohost the compounding orders passed on orafter June 1, 2016 on the Bank’s website(www.rbi.org.in). The data on the website willbe updated at monthly intervals.
2. Public disclosure of guidelines on the amountimposed during compounding
3. Now it has been decided to put the guidancenote on the Bank’s website for information ofgeneral public, which has already beendiscussed earlier and the same are live now incirculer number RBI/FED/2015-16/1 FEDMaster Direction No.4/2015-16.
CONCLUSION
Dealing with RBI has been never been an easy taskbut with the passage of time RBI has been puttinglot of efforts to bridge this connotation and now aday’s every step of RBI is in this direction. A verygood example is the consolidated Master Circularfor each subject matter, issued annually or halfyearly, whereby it complies up all the alterationsdone or circulars issued during the year, into oneso as to give the concerned persons an easyaccess and comfort while dealing with it andwhich has also served the base of this article.
GHAZIABAD CHAPTER E-NEWSLETTER Page 18
**********************
CS Kamal Nath Thakur,Dy. General Manager-FinanceNTPC Ltd.
CORPORATE SOCIAL RESPONSIBILITY(CSR)- POST AMENDMENTS & IN PANDEMIC(COVID-19) SCENARIO.
❖ CSR can be defined as a Company’s sense ofresponsibility towards the community andenvironment, both ecological and social inwhich it operates.
❖ CSR is not charity or mere donations. CSR is away of conducting business, by whichcorporate entities visibly contribute to thesocial good.
❖ On 31 July 2019, the Companies (Amendment)Act 2019 (Amendment) received assent of thePresident of India. The Amendment also retainsthe ‘crackdown’ provisions on black money andshell companies. The new crackdown provisionis the revisions to the existing framework ofCorporate Social Responsibility (CSR). The CSRregime is now no longer “comply or explain”but “comply or imprisonment”. Erstwhile CSRrequirements under Section 135: Under theerstwhile framework, all companies having networth of INR 500 Crore or more, or turnoverof INR 1000 Crore or more, or net profit of INR5 Crore or more during any financial year, arerequired to constitute a CSR committee. Suchcompanies were required to develop adedicated CSR policy (giving preference to localareas where the company operates) andestablish a CSR fund equivalent to 2 percent ofthe average net profits made by the companyin 3 (three) immediately preceding financialyears. Under the Companies Act 2013(Companies Act), if the company failed to meetits CSR obligations, the reasons for notspending the CSR amounts were required to bedisclosed
❖ If there are any unspent CSR funds during afinancial year (in respect of an ongoing CSRProject), in accordance with its CSR policy, thecompany must transfer such unspent CSRfunds into a special account within a period of30 (thirty) days from the end of the financialyear. Such account, to be opened with ascheduled bank by the company, will be calledan Unspent Corporate Social ResponsibilityAccount (Unspent CSR Account) and theproceeds of the Unspent CSR Account will haveto be spent by the company towards the CSRprojects (under its CSR policy) within 3 (three)financial years from the date of such transfer. Ifthe company is unable to spend the sum in theUnspent CSR Account within the prescribedperiod of 3 (three financial years, then, suchunspent amount should be transferred to afund specified under Schedule VII of theCompanies Act (Schedule VII Fund) within 6(six) months from the end of the relevantfinancial year.
❖ Considering the spread of novel Coronavirus(COVID-19) in India, the Ministry of CorporateAffairs (MCA) has announced that spending ofCSR Funds for COVID-19 is an eligible CSRactivity of a company. The Governmentclarified that the funds spent on measures totackle the Covid-19 outbreak would beconsidered as the corporate socialresponsibility (CSR) activity of firms.
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 19
JULY 2020Ineligible spending on CSR are:-
1. Contribution to CM’s/ state relief fund.
2. Payment of wages to employees.
3. Payment to casual workers during lockdown period.
GHAZIABAD CHAPTER E-NEWSLETTER Page 20
Eligible CSR Expenditure Related to COVID-19 Activities are:-
1. Contribution to PM CARE Fund
2. Contribution to the State Disaster Management Authority.
3. Spending of CSR fund for Covid-19.
**********************
CS Ujjwal JindalB.Com, CA, CS
WHAT TAXES SHALL YOU PAY FOR THE FINANCIAL YEAR 2019-20? A complete tax guide for your income tax computation!
JULY 2020
In India, every year, the Finance Ministerannounces an annual Union Budget for theup-coming financial year.
According to Article 112 of the IndianConstitution, the Union Budget of a year (referredto as the annual financial statement), is astatement of the estimated receipts andexpenditure of the government for thatparticular year.
Annual Union Budget keeps the account of thegovernment's finances for the fiscal year thatruns from 1st April to 31st March.
However, during the transition period, when anew government is due to take over, an InterimBudget is presented by the outgoing governmentbefore the General Elections for Lok Sabha (heldevery five years). The term ‘interim’ meanstemporary or for the time being. The InterimBudget contains detailed documentation of everyexpense to be incurred and every rupee to beearned through taxes in the coming few monthsuntil the new government comes to power.During the transition period, the rulinggovernment needs the Parliament’s approval toextract money from the Consolidated Fund ofIndia, where the government puts all its revenue.When the election is around the corner, it isunrealistic for the ruling government to launch aregular Annual Budget. So it gets passed as anInterim Budget, consisting of full estimates of therevenue and expenditure and some policymeasures too.
An Interim Budget differs from the AnnualBudget in many ways. A Budget has two parts –the report of expenses and income in the previous
year and the proposed expenses and incomegeneration in the coming year.As for the Interim Budget, the first part will remainthe same. However, the second part will containdocumentation of only basic expenses until theelection. According to the Electoral CommissionRegulations, the current government is not allowedto introduce any major policy changes, new rules oramendments that can influence the vote banksunfairly.
The year 2019 was an election year and thereforehad an Interim Budget that was presented by Sh.Piyush Goyal before the end of PM Narendra Modi-led NDA government’s first term (2014-2019) andan Annual Budget (also known as Final Budget) thatwas presented by Sh. Nirmala Sitharaman after theModi-led NDA government received a massivemandate to form the government once again(2019-2024). On 1st February, 2020 the FinanceMinister announced Union Budget for financial year2020-2021. Everyone went busy discussing andinterpreting the new provisions that wereintroduced by the said Budget.Further, the COVID-19 breakout lead to a nation-wide lockdown for over 2 months.
All these happening made the people forget thetaxes that they were to pay for the financial year2019-2020.
GHAZIABAD CHAPTER E-NEWSLETTER Page 21
http://www.financialexpress.com/tag/narendra-modi/
JULY 2020This article is focused on highlighting theprovisions of Budget 2019 based on which thepeople of India are required to pay theirrespective taxes for the previous financial yeari.e. 2019-2020.
This article will act as a ready reckoner for taxcomputation, for all the people who would befiling their income tax returns on or before 30th
day of November, 2020 (extended due date
for filing income tax return as announced by theFinance Minster on 13th May, 2020 under theSpecial Economic Atmanirbhar Bharat Package)for the financial year 2019-2020.
BUDGET 2019 AND THE FINANCE ACT, 2019
As mentioned earlier, the year 2019 was anelection year and therefore had 2 budgets i.e. theInterim Budget and the Annual or Final Budget.The amendments, additions, changes, etc. weremade by both the Budgets.
First, we would take up the amendments,additions, changes, etc. that were made by theInterim Budget, 2019.
I. INTERIM BUDGET and THE FINANCE ACT,2019
The Interim Budget gave many tax reliefs andexemptions to the small taxpayers’ i.e. middleclass, salary earners, pensioners and seniorcitizens.
Let’s discuss these provisions in detail.
1. No tax payment on total income up to Rs.5,00,000/- for individual resident taxpayers
An assessee, being an individual resident in India,whose total income does not exceed Rs.5,00,000 shall be entitled to a deduction, from theamount of income-tax on his total income, of an
amount equal to 100% of such income-tax or anamount of Rs. 12,500, whichever is less.
The government did not raise the tax-slab;however, it raised the limit of rebate of incometax under section 87A to exempt income tax ontotal income for a resident individual up to Rs.5,00,000 w.e.f. 1st April, 2020 i.e. for thefinancial year 2019-2020.
As a result, of this relief, even persons havinggross income up to Rs. 6,50,000 may not berequired to pay any income tax if they makeinvestments in provident funds, specified savings,insurance etc. In fact, with additional deductionssuch as interest on home loan up to Rs. 2,00,000,interest on education loans, National PensionScheme (NPS) contributions, medical insurance,medical expenditure on senior citizens etc.persons having even higher income will not haveto pay any tax.
It is pertinent to note that• this rebate is available to resident individuals
only and not to HUFs.• this rebate is only available when the total
income does not exceed Rs. 5,00,000
2. Standard deduction for salaried individualsraised to Rs. 50,000
For salaried taxpayers and pensioners, StandardDeduction has been raised from the current Rs.40,000 to Rs. 50,000 w.e.f. 1st April, 2020 i.e. forfinancial year 2019-2020. Thus, an additional taxbenefit on income of Rs. 10,000 has been added.
ILLUSTRATIONS ON POINT 1 & POINT 2:
FIRST: Mr. A, aged 32, earned salary income of Rs.8,25,000 for the financial year 2019-20. Hisemployer deposited Rs. 1,00,000 in PF and heinvested Rs. 50,000 in a 5 year tax saver fixeddeposit with a bank. He also paid interest on loan
GHAZIABAD CHAPTER E-NEWSLETTER Page 22
JULY 2020of Rs. 1,00,000 taken for his self-occupied house.He also paid a premium for a family floater healthinsurance policy of Rs. 25,000.
What taxes shall Mr. A pay for the financial year2019-20?
SECOND: Mr. Z, aged 61, earned salary income inform of pension of Rs. 8,80,000 for the financialyear 2019-20. He also received Rs. 60,000 frominterest on FD made with SBI. He deposited Rs.1,50,000 in PPF. He also paid interest on loan ofRs. 2,10,000 taken for his self- occupied house. Healso paid a premium for a floater health insurancepolicy of Rs. 55,000 for himself and his spouse. Healso made a donation of Rs. 21,000 to the PMNation Relief Fund.
What taxes shall Mr. Z pay for the financial year2019-20?
GHAZIABAD CHAPTER E-NEWSLETTER Page 23
Statement showing computation of Total Income ofMr. A and Tax payable thereon
Description Amount(Rs.)
Income under the headSalary
7,75,000
Gross Salary 8,25,000
Less: Standard Deduction 50,000*
Income under the headHouse Property
(1,00,000)
Less: Interest paid on loantaken for self-occupied house
1,00,000
Gross Total Income (GTI) 6,75,000
Less: Deductions underChapter VI-A
(1,75,000)
80C – PF contributions &deposit in 5 year FixedDeposit with a bank
1,50,000
80D – Medical InsurancePremium paid
25,000
Total Income (TI) 5,00,000
Tax payable on total income 12,500
Up to Rs. 2,50,000 NIL2,50,001 to 5,00,000 @ 5% 12,500
Less: Rebate on tax undersection 87A**
(12,500)
Add: Health and EducationCess @ 4%
NIL
Total Tax Payable NIL
Statement showing computation of Total Income ofMr. Z and Tax payable thereon0Description Amount
(Rs.)Income under the headSalary
8,30,000
Gross Salary/Pension 8,80,000Less: StandardDeduction
50,000*
Income under the headHouse Property
(2,00,000)
Less: Interest paid onloan taken for self-occupied house
2,10,000**
Income under the headOther Sources
60,000
Interest on Fixed Depositwith SBI
60,000
Gross Total Income (GTI) 6,90,000Less: Deductions underChapter VI-A
(2,71,000)
80C – PPF contribution 1,50,00080D – Medical InsurancePremium
50,000
80G – Donations to PM-NRF
21,000
80TTB – Interest on FD 50,000***Total Income (TI) 4,19,000Tax payable on totalincome
5,950
Up to Rs. 3,00,000 NIL
*Standard deduction increased from Rs. 40,000 toRs. 50,000 by the Finance Act, 2019**Added by the Finance Act, 2019
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 24
3,00,001 to 4,19,000 @5%
5,950
Less: Rebate on taxunder section 87A****
(5,950)
Add: Health andEducation Cess @ 4%
NIL
Total Tax Payable NIL
*Standard deduction increased from Rs. 40,000 toRs. 50,000 by the Finance Act, 2019**Max. interest on loan paid taken for self-occupied house that can be allowed as deductionis Rs. 2,00,000 under section 24. The balance ofRs. 10,000 is disallowed.***Max. allowance under section 80TTB is Rs.50,000.****Added by the Finance Act, 2019
THIRD: Mr. F, aged 45, earned salary income ofRs. 10,00,000 for the financial year 2019-20. Hereceived Rs. 15,000 as interest on his saving bankaccount. He deposited Rs. 1,50,000 in a 5 year FDwith post office. He also paid interest on loan ofRs. 2,50,000 taken for his self-occupied house. Healso paid a premium for a floater health insurancepolicy of Rs. 20,000 for himself and his spouse. Healso paid medical expenses for his father duringthe year of Rs. 35,000 who was not covered byany insurance policy. He also made a donation ofRs. 25,000 to the PM Nation Relief Fund. He hasalso paid interest on loan of Rs. 25,000 taken forhigher education of his son.
What taxes shall Mr. F pay for the financial year2019-20?
*Standard deduction increased from Rs. 40,000 toRs. 50,000 by the Finance Act, 2019.
Statement showing computation of Total Income of Mr. F and Tax payable thereon
Description Amount (Rs.)
Income under the headSalary
9,50,000
Gross Salary/Pension 10,00,000
Less: StandardDeduction
50,000*
Income under the headHouse Property
(2,00,000)
Less: Interest paid onloan taken for self-occupied house
2,50,000**
Income under the headOther Sources
15,000
Interest on Saving BankAccount
15,000
Gross Total Income(GTI)
7,65,000
Less: Deductions underChapter VI-A
(2,60,000)
80C – PPF contribution 1,50,00080D – Medical InsurancePremium and Medicalexpenditure for hisFather
50,000***
80E – Interest on loanfor higher education
25,000
80G – Donations to PM-NRF
25,000
80TTA – Saving BankInterest
10,000****
Total Income (TI) 5,05,000Tax payable on totalincome
13,500
Up to Rs. 2,50,000 NIL3,00,001 to 5,00,000 @5%
12,500
5,00,001 to 5,05,000 @20%
1,000
Less: Rebate on taxunder section 87A
(NIL astotalincomeexceedsRs.5,00,000)
NIL
Add: Health andEducation Cess @ 4%
540
Total Tax Payable 14,040
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 25
**Max. interest on loan paid taken for self-occupied house that can be allowed as deductionis Rs. 2,00,000. The balance of Rs. 50,000 isdisallowed.***Max. amount deductible under section 80D isRs. 50,000 therefore Rs. 5,000 is disallowed.****Max. allowance under section 80TTA is Rs.10,000.
3. No tax on notional rent of a second self-occupied house
Currently, income tax on notional rent is payableif one has more than one self-occupied house.Considering the difficulty of the middle classhaving to maintain families at two locations onaccount of their job, children’s education, care ofparents etc. the Interim Budget, 2019, exemptedthe levy of income tax on notional rent on asecond self-occupied house.
To give effect to this, the Finance Act, 2019amended Section 23(4) of the Act as follows:
Section 23(4): Where the property referred to insub-section (2) consists of more than [one twohouse]—a) the provisions of that sub-section shall apply
only in respect of [one two] of such houses,which the assessee may, at his option, specifyin this behalf;
b) the annual value of the house or houses,[other than the house or houses] in respect ofwhich the assessee has exercised an optionunder clause (a), shall be determined undersub-section (1) as if such house or houses hadbeen let.
4. Benefit of rollover of Capital Gains increasedfrom investment in 1 residential house to 2residential houses
The benefit of rollover of capital gains undersection 54 of the Act has been increased from
investment in 1 residential house to 2 residentialhouses for a tax payer having capital gains up toRs. 2 crore. This benefit can be availed once in alife time.Let’s understand this with an example.
Illustration: In December, 2019, Mr. Q sold his 5BHK residential house at Delhi for Rs. 3.25crores. The cost of acquisition for this house wasRs. 1.25 crores (after indexation).He bought 2 new 4 BHK residential houses atNoida in a newly developed township at a cost ofRs. 1 crore each in order to provide sufficientliving space for his expanding family.
What taxes by of capital gain will Mr. Q pay?
Extract of Statement of Total Income of Mr. Q showing computation of Income under the head
Capital Gain for financial year 2019-2020Description Amount
(Rs.)Income under the head Capital Gain
NIL
Sale Consideration 3,25,00,000
Less: Cost of Acquisition (Indexed)
1,25,00,000
Capital Gains 2,00,00,000
Less: Deduction under Section 54(Rs. 1 crore x 2 houses)
2,00,00,000
Notes:
1. This benefit cannot be availed by the assesseein any future years. This benefit is availableonce in a life time only to an assessee.
2. The capital gains shall only be up to Rs. 2crores in order to avail this benefit.
We are here done with the amendments thatwere made by the Interim Budget, 2019.
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 26
Let’s now understand the amendments, changes,additions, etc. made by the Annual or FinalBudget, 2019.
II. ANNUAL/FINAL BUDGET and THE FINANCE(NO. 2) ACT, 2019
1. Tax incentive for Electric Vehicles [Section80EEB]
A new section 80EEB has been introduced by theBudget that provides for a deduction in respect ofinterest on loan taken for purchase of an electricvehicle from any financial institution up to Rs.1,50,000 subject to the following conditions:
(i) the loan has been sanctioned by a financialinstitution (incl. NBFC) during the periodbeginning on the 1st April, 2019 to 31st March,2023.(ii) the assessee does not own any other electricvehicle on the date of sanction of loan.
This has been done with a view to improveenvironment and to reduce vehicular pollution.
Where a deduction under this section is allowedfor any interest, deduction shall not be allowed inrespect of such interest under any otherprovisions of this Act.
2. Tax incentive for Affordable Housing [Section 80EEA]
A new section 80EEA has been introduced by the Budget that provides for a deduction in respect of interest up to Rs. 1,50,000 on loan taken for residential house property from any financial institution subject to the following conditions:i. loan has been sanctioned by a financial
institution during the period beginning on the 1st April, 2019 to 31st March 2020.
ii. the stamp duty value of house property does not exceed Rs. 45,00,000.
iii. assessee does not own any residential houseproperty on the date of sanction of loan.
This has been done in order to provide an impetusto the ‘Housing for all’ objective of theGovernment and to enable the home buyer tohave low-cost funds at their disposal.
Where a deduction under this section is allowedfor any interest, deduction shall not be allowed inrespect of such interest under any otherprovisions of this Act.
3. Incentives to National Pension System (NPS)subscribers
Under the existing provisions, any payment fromNPS to an assessee on closure of his account or onhis opting out of the pension scheme, to theextent it does not exceed 40% of the total amountpayable to him at the time of such closure or onhis opting out of the scheme, was exempt fromtax.
With a view to enable the pensioner to have moredisposable funds, the said exemption limit hasbeen increased from 40% to 60% of the totalamount payable to the person at the time ofclosure or his opting out of the scheme.
Further, under the existing provisions of section80CCD, in respect of any contribution by theCentral Government or any other employer to theaccount of the employee, the assessee shall beallowed a deduction in the computation of histotal income, of the whole of the amountcontributed by the Central Government or anyother employer, as does not exceed 10% of hissalary in the previous year.
In order to ensure that the Central Governmentemployees get full deduction of the enhancedcontribution, the limit has been increased from10% to 14% of the contribution made by the
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 27
Central Government to the account of itsemployee.Also, to enable the Central Governmentemployees to have more options of tax savinginvestments under NPS, section 80C is amendedso as to provide that any amount paid ordeposited by a Central Government employee asa contribution to his Tier-II account of thepension scheme shall be eligible for deductionunder the said section.
4. Mandatory furnishing of return of income bycertain persons
Currently, a person (other than a company or afirm) is required to furnish the return of incomeonly if his total income exceeds the maximumamount not chargeable to tax, subject to certainexceptions. Therefore, a person entering intocertain high value transactions is not necessarilyrequired to furnish his return of income. In orderto widen and deepen the tax net, the budgetprovided that a persons who enter into certainhigh value transactions shall be mandatorilyrequired to file his return of income, if during theprevious year, he
i. has deposited an amount or aggregate of theamounts exceeding Rs. 1 crore in one ormore current account maintained with abanking company or a co-operative bank; or
ii. has incurred expenditure of an amount oraggregate of the amounts exceeding Rs.2,00,000 for himself or any other person fortravel to a foreign country; or
iii. has incurred expenditure of an amount oraggregate of the amounts exceeding Rs.1,00,000 towards consumption ofelectricity; or
iv. fulfils such other prescribed conditions, asmay be prescribed.
Further, currently, a person claiming rolloverbenefit of exemption from capital gains tax oninvestment in specified assets like house, etc., isnot required to furnish a return of income, if afterclaim of such rollover benefits, his total income isnot more than the maximum amount notchargeable to tax. The annual Budget 2019provided that a person who is claiming such
rollover benefits on investment in a house orother assets, under sections 54, 54B, 54D, 54EC,54F, 54G, 54GA and 54GB of the Act, shallnecessarily be required to furnish a return, ifbefore claim of the rollover benefits, his totalincome is more than the maximum amount notchargeable to tax.
THE TAXATION AND OTHER LAWS (RELAXATIONOF CERTAIN PROVISIONS) ORDINANCE, 2020AND N/N 35/2020
Keeping in view the challenges faced by taxpayersin meeting the compliance requirements underlockdown conditions, the Finance Minister hadannounced several relief measures relating tostatutory and regulatory compliance mattersacross sectors in view of COVID-19 outbreak on24.03.2020 vide a press release. In order to giveeffect to the announcements, the governmentbrought in an Ordinance on 31.03.2020 whichprovided for extension of various time limitsunder the Taxation and other Acts.
Again, on 24th June, 2020, the Government issueda Notification No. (N/N) 35/2020 extendingfurther , the various time limits (i.e. beyond thetime limits provided by the Ordinance) under theIncome Tax Act, 1961 and other related Acts inorder to provide further relief to the taxpayers formaking various compliances.
The salient features of the Notification are asunder:
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 28
Description Implication
FURTHER EXTENSION in
the date for making
investment/deposit/pay
ment for claiming
deduction under
Chapter VIA-B
Date for making
investment/deposit/
payment for claiming
deduction under
Chapter VIA-B which
includes Section 80C
(LIC, PPF, NSC, etc.),
80D (Mediclaim, etc.),
80G (Donations), etc.
has been further
extended to 31st July,
2020.
1.
Investments/Deposits/Paym
ents can now be made up to
31.07.2020 for claiming
deduction under these
sections for financial year
2019-2020.
2. The deduction can be
availed only once for a
financial year and cannot be
taken for both the financial
years simultaneously.
For example, Mr. A can
make PPF deposit on
25.07.2020 and claim the
deduction for the same
under section 80C for F/Y
2019-2020 or for F/Y 2020-
2021. He cannot claim it for
both the years
simultaneously.
FURTHER EXTENSION in
the date for claiming
deduction under Section
54 to 54GB
Date for making
investment,
construction or
purchase for claiming
roll over benefit or
deduction in respect of
capital gains under
sections 54 to 54GB of
the Act has been further
extended to
30th September, 2020.
The investment,
construction or purchase
made up to 30.09.2020 shall
be eligible for claiming
deduction from capital gains
arising during F/Y 2019-
2020.
FURTHER EXTENSION in
the date for Aadhaar-
PAN linking
Extension of Aadhaar-
PAN linking date to 31st
March, 2021.
The earlier date was 30th
June, 2020.
To avoid penalty and
invalidation of PAN,
Aadhaar needs to be linked
with PAN by 31.03.2021.
EXTENSION in payment
of Self-Assessment Tax
if the tax liability is upto
Rs. 1,00,000/-
The date for payment ofself-assessment tax in thecase of a taxpayer, whoseself-assessment tax liabilityis upto Rs. 1 lakh has beenalso extended to 30thNovember, 2020.
However, it was clarified
that there shall not be any
extension in the date for the
payment of self-assessment
tax for the taxpayers having
self-assessment tax liability
exceeding Rs. 1 lakh. In this
case, the whole of the self-
assessment tax shall be
payable by the due dates
specified in the Income Tax
Act and delayed payment
would attract interest under
section 234A of the Act.
EXTENSION in the date
for furnishing TDS/TCS
statements and
issuance of TDS/TCS
certificates pertaining to
FY 2019-2020
Date of furnishing
TDS/TCS
statements/certificates
extended to 31st July,
2020 and 15th August,
2020 respectively.
The furnishing of theTDS/TCS statements andissuance of TDS/TCScertificates being theprerequisite for enabling thetaxpayers to prepare theirreturn of income for FY2019-20, the date forfurnishing of TDS/TCSstatements and issuance ofTDS/ TCS certificatespertaining to the FY 2019-20has been extended to 31stJuly, 2020 and 15th August,2020 respectively.
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 29
PM CARES FUND
A special fund “Prime
Minister’s Citizen
Assistance and Relief in
Emergency Situations
Fund (PM CARES
FUND)” has been set up
for providing relief to
the persons affected
from the outbreak of
COVID-19.
The Ordinance
amended the provisions
of the Act to provide
the same tax treatment
to PM CARES Fund as
available to Prime
Minister National Relief
Fund.
1. The donations made to
the PM CARES Fund shall be
eligible for 100% deduction
under section 80G of the
Act.
2. The limit on deduction of
10% of gross income shall
also not be applicable for
donation made to PM
CARES Fund.
3. As the date for claiming
deduction under section
80G has been extended up
to 31.07.2020, the donation
made up to 31.07.2020 shall
also be eligible for
deduction from income of
F/Y 2019-2020.
Let’s discuss a very important implication of theabove extension.
In the Illustration FIRST (Section I), discussedabove, if Mr. A has a Total Income (TI) of, say, Rs.5,01,000, what taxes will Mr. A have to pay?
As per the extension provided, is there any wayby which Mr. A can still save his tax? The answeris YES!
Mr. A can save a tax of Rs. 13,208 only if his totalincome is upto Rs. 5,00,000. Thus, in order tolower his total income, Mr. A is required todonate Rs. 1,000 to PM CARES FUND or PM-Nation Relief Fund which provides 100%deduction under section 80G by 31.07.2020 (asfurther extended by N/N 35/2020 discussedabove).
By virtue of this, his tax payable would be asfollows:
Total Income (TI) 5,01,000Tax payable on totalincome
12,700
Up to Rs. 2,50,000 NIL2,50,001 to 5,00,000 @5%
12,500
5,00,001 to 5,01,000 @20%
200
Less: Rebate on taxunder section 87A
(NIL as totalincomeexceeds Rs.5,00,000)
NIL
Add: Health andEducation Cess @ 4%
12,700 x 4% 508
Total Tax Payable 13,208
Extract showing computation of Total Income of Mr.A and Tax payable thereonGross Total Income (GTI) 6,76,000Less: Deductions underChapter VI-A
(1,75,000)
80C – PF contributions &deposit in 5 year FixedDeposit with a bank
1,50,000
80D – Medical InsurancePremium paid
25,000
80G – Donation to PMCares Fund
1,000
Total Income (TI) 5,00,000Tax payable on totalincome
12,500
Up to Rs. 2,50,000 NIL2,50,001 to 5,00,000 @5%
12,500
5,00,001 to 5,01,000 @20%
200
Less: Rebate on taxunder section 87A
(as totalincome isnow notexceedingRs.5,00,000)
12,500
Add: Health andEducation Cess @ 4%
12,700 x4%
NIL
Total Tax Payable NIL
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 30
Thus, Mr. A would save the entire tax by makinga small donation towards a noble cause. Thus,there would be a multi-fold benefit!
Effective net saving to Mr. A would be (13,208-1,000) Rs. 12,208.The extensions announced by the Government bythe Ordinance and the Notifications shall thusprovide much relief to the taxpayers during theongoing COVID-19 pandemic.
ATMANIRBHAR BHARAT (SPEICAL ECONOMICPACKAGE) – vide Press Release dated 13th May,2020
The COVID-19 lockdown made everything non-operational. The businesses are shut, people arelocked at their homes, there is no commercialactivity and the entire world economy is at its alltime low!
Considering the above, the economic package, inorder to ease the burden of compliances onvarious stakeholders has extended the timeframe for:
1. Filing Return of Income and Tax Audit Reportfor F/Y 2019-2020 i.e. A/Y 2020-2021
2. Assessments
As the dates of filing return of income have beenextended the assessment period is extended aswell.
Description Before Now- ITR by a Company or- Where there is Auditrequirement under IncomeTax Act or any other law or- ITR by a partner of afirm whose accounts arerequired to be audited
31st
October,2020
30th
November,2020
Others31st July,2020
30th
November,2020
Filing of Tax Audit Report 30th
September, 2020
31st
October,2020
Assessments gettingbarred on
Extended to
30th September, 2020 31st December, 202031st March, 2021 30th September, 2021
Vivad se Vishwas Scheme
The scheme was introduced by the Budget 2020and came in form of an Act in March, 2020. Sinceits introduction this scheme has remained inVivads with regard to its due date.
Earlier the last date for dispute settlementbetween the taxpayer and the department,without any interest and penalty, was 31st March,2020 but as the scheme was notified late, it wasextended to 30th June, 2020.
Again, the economic package has extended thisdate to 31st December, 2020. Therefore, nowtaxpayers can settle their existing disputeswithout payment of any additional amount by 31st
December, 2020.
CONCLUSION:
With the help of this article, all individuals wouldbe able to compute their total income and thetax payable thereon for the financial year 2019-2020.
All the amendments, notifications, orders,circulars, acts, press releases, etc. notified till datehas been fully incorporated in the above article.At the time of filing your income tax returns, theprovisions highlighted in this article shall serve asa ready reckoner for computing total income andtax payable thereon for the financial year 2019-2020 for an individual.
JULY 2020All our readers are requested to kindly take noteof the following:
[For ITR-1, 2, 3 and 4]
We advise all the taxpayers to file their ITRs onlyafter 31st July, 2020 (being the extended last datefor making investments/payments/deposits inorder to claim deductions under chapter VIA-Bi.e. 80C, 80D, 80G, etc.) so that they do not missout on the last opportunity for claiming anydeduction in a hurry to file for their ITRs.
[For ITR-2 and 3]We advise all the taxpayers to file their ITRs onlyafter 30th September, 2020 (being the extendedlast date for makinginvestments/construction/purchase in order toclaim roll over benefit/deductions under section54 to 54GB, if applicable) so that they do not missout on claiming any benefit/deduction in a hurryto file for their ITRs.File your income tax returns in time to avoid lastminute rush, late fees, interest, penalties andother statutory fines.
For any queries with respect to the above articleor to get assistance with regard to income and taxcomputation or alike send us an e-mail [email protected]
GHAZIABAD CHAPTER E-NEWSLETTER Page 31
**********************
mailto:[email protected]
CS Ravi Garg
STAMP DUTY ON TRANSFER OF SHARES IN DEMATERIALIZED FORM
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 32
DETAILS OF THE AMENDMENT
This is to inform your that pursuant to theamendments to the Indian Stamp Act, 1899notified in The Finance Act, 2019, Ministry ofFinance (Department of Revenue) through itsnotification dated December 10, 2019 has notifiedthe Indian Stamp (Collection of stamp-dutythrough Stock Exchanges, Clearing Corporationand Depository) Rules 2019 to regulate the liabilityof the instruments of transaction in stockexchanges and depositories to duty. (Earliereffective date: 9th day of January, 2020)
Further, the Central Government (Ministry of Finance) vide notification dated March 30, 2020 has deferred the effective date of amendments in Indian Stamp Act to 01st day of July, 2020.
PURPOSE OF THE AMENDMENT
The purpose of making such amendment is tostreamline the process of levying and collection ofStamp Duty on the Instruments related to issue ortransfer of securities, by all the States throughcommon agencies i.e. Stock Exchanges or ClearingCorporations or Depositories, as the case may be.
The Amended Stamp Act and the Rules addressthe payment of stamp duty on securities. It bringsclarity with respect to modalities and obligationsin relation to payment of stamp duty, and theresponsibility of the stock exchanges anddepositories for collection of duty, while effectingsuch transactions. Furthermore, the Rules alsoprovide for the duty of the collecting agents, thatis, the stock exchanges and the depositories totransfer the duty collected to the relevant stategovernments (basis the domicile of the
transacting parties) and submit monthly returns inrespect of the duty so collected.
*Union List did not have power to specify rates of stamp duty in respect of issue of shares, the same comes under the purview of the State Legislature.
KEY UPDATES FROM THE AMENDED STAMP ACT AND THE RULES
1. Amendment in the Definitions: theAmended Stamp Act amends the existingdefinitions to align them with the definitionsprovided under other laws/act(s), such as“debenture”, “market value” and“securities”. The new definition of“securities” is extensive and has the neteffect of extending the list of instrumentsliable to stamp duty.
2. Removal of the exemption of stamp duty ontransfer of shares in dematerialized form:Prior to the amendment, transfer ofsecurities in physical form was subject to thepayment of stamp duty and transfer ofsecurities in dematerialized form wasexempted. This exemption has been remivedand stamp duty is now payable on transfer ofsecurities (with consideration) indematerialised form.
3. Stamp Duty on Commercial Papers:Commercial Papers will be stamped asDebentures.
4. Stamp Duty on principal instrument only:The existing provisions of section 4 of the Acthave been amended by including sub section(3) which is as follows:
.”
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 33
“(3) Notwithstanding anything contained in sub-sections (1) and (2), in the case of any issue, saleor transfer of securities, the instrument on whichstamp-duty is chargeable under section 9A shall bethe principal instrument for the purpose of thissection and no stamp-duty shall be charged on anyother instruments relating to any suchtransaction.”
A single transaction through the stockexchange or depository often involves theexecution of several instruments (e.g., notes,memorandums, etc.). To avoid multiplicity ofpayments of stamp duty on suchtransactions, the Amended Stamp Actprovides that stamp duty is payable only onthe principal instrument. The principalinstrument for different transactions isspecified in the Amended Stamp Act. TheAmended Stamp Act clarifies that no stampduty shall be charged on any instrument(other than the principal instrument) on asingle transaction.
5. Liability for payment of stamp duty: As per the Amended Stamp Act, the persons liable to pay stamp duty in different transactions are as per the below table:
6. Revised Stamp Rates: The Finance Act hasalso amended the Schedule I of the StampAct, to change some existing duties andprovides for new duties in case oftransactions related to transfer.
Prior to the introduction of the AmendedStamp Act, stamp duty was payable at a flatrate of 0.25% of the consideration on atransfer of shares. There was no stamp dutyprescribed on the issue of shares (apart fromthe share certificate issued to theshareholder). The Amended Stamp Actspecifies the following rates of stamp duty fordifferent kinds of transactions involvingsecurities.
SN
Nature of transaction Onus
1Sale of security throughstock exchange
Buyer
2Sale of security otherwisethan through stock exchange
Seller
3Transfer of security throughdepository
Transferor
4
Transfer of securityotherwise than through astock exchange ordepository
Transferor
5Issue of security (whetherthrough a stock exchange ora depository or otherwise)
Issuer
6In case of any other instrumentnot specified in Section 29 of theIndian Stamp Act, 1899
By thepersonmaking,drawing orexecutingsuchinstrument
Sl. no.
TypeStamp duty
1 Debentures
i. Issuance of debentures 0.005%
ii.Transfer or re-issuance of debentures
0.0001%
2 Securities other than debentures
i. Issuance of securities 0.005%
ii.Transfer of securities on delivery basis
0.015%
iii.Transfer of securities on non-delivery basis
0.003%
iv. Derivatives
a. Futures (equity and commodity) 0.002%
b. Options (equity and commodity) 0.003%
c.Currency and interest rate derivatives
0.0001%
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 34
1. Transactions not attracting stamp duty[Rule 6 (3)] : Creation or destruction ofsecurities on account of corporate actionsviz. Stock split, Stock consolidation andMergers and acquisition in case there is nochange in beneficial ownership will notattract stamp duty [Rule 6 (3)] subject tobelow exceptions:Change in Beneficial ownership shall be subject to stamp dutyFresh issue to investor as a part of corporate action shall be subject to stamp duty
1. Timeline for transfer of Stamp duty underSection 9A(4) to State Government: Thestock exchange or a clearing corporationauthorised by it or the depository, as thecase may be, shall, within three weeks ofthe end of each month and in accordancewith the rules made in this behalf by theCentral Government, in consultation withthe State Government, transfer the stamp-duty collected under this section to theState Government where the residence ofthe buyer is located and in case the buyer islocated outside India, to the StateGovernment having the registered office ofthe trading member or broker of such buyerand in case where there is no such tradingmember of the buyer, to the StateGovernment having the registered office ofthe participant.
APPLICABILITYThis amendment shall be applicable with effectfrom 01st day of July, 2020.
OTHER IMPORTANT POINTS
➢ For the purpose of stamp duty, option trades
shall be valued at premium
➢ If the consideration, for off market
transaction(s), is paid in part or in
installments, then the stamp duty shall be
paid on the entire sale consideration.
➢ For transfer of securities pursuant to
invocation of pledge, stamp duty shall be
collected from the pledgee on the market
value of the securities.
➢ In case of off-market transfers Stamp duty
shall be paid by the transferor on the
consideration amount specified by him in the
'Delivery Instruction Slip (DIS)’.
➢ For all off market transactions stamp duty is
to be paid in advance i.e. prior to execution
of the instruction. In continuation of above,
applicable rates of Transaction and Clearing
Charges (on Turnover) effective from July 01,
2020 are:
Disclaimer:
IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.
d. Other derivatives 0.002%
v. Government securities 0%
vi. Repo on corporate bonds 0%
*************************
CORPORATE COMPLIANCE CALENDAR
PCS LALIT RAJPUT
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 35
ABOUT ARTICLE :This article contains various Compliance requirements under Statutory Laws. Compliance means “adhering torules and regulations.” Compliance is a continuous process of following laws, policies, and regulations, rules tomeet all the necessary governance requirements without any failure.
If you think compliance is expensive, try non‐ compliance”
Compliance Requirement Under
1 Foreign Exchange Management Act, 1999 (FEMA) and Important Notifications page no. 36
2. Income Tax Act, 1961 page no. 39
3. Goods & Services Tax Act, 2017 (GST) and Important Updates / Circulars page no. 42
4. Other Statutory Laws and Updates page no. 46
5. SEBI (Listing Obligations & Disclosure Requirements) (LODR) Regulations, 2015 page no. 48
6. SEBI Takeover Regulations 2011 page no. 56
7. SEBI (Prohibition of Insider Trading) Regulations, 2015 page no. 57
8. SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 page no. 57
9. SEBI (Buyback of Securities) Regulations, 2018 page no. 59
10. SEBI (Depositories and Participants) Regulations 2018) and Circulars / Notifications page no. 59
11. Minimum Public Shareholding (MPS) requirements page no. 60
12. Regulatory Requirements by the trading members / clearing members / depository
participants, mentioned in the SEBI circulars page no. 61
13. Timelines for compliance with the regulatory requirements by DPS / RTAS / KRAS page no. 62
14. SEBI Relaxations for Preferential Issues Matters page no. 63
15. Stamp duty rates w.e.f. 1st July 2020 & AIF update page no. 63
16. Companies Act, 2013 (MCA/ROC and LLP Compliance) and Notifications page no. 67
17. IEPFA (Accounting, Audit, Transfer and Refund) Rules 2016 page no. 71
18. Insolvency and Bankruptcy Board of India (IBBI) Updates page no. 71
19. NBFC Compliance Overview page no. 72
20. RERA Gujarat Quarterly Return page no. 73
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 36
1. COMPLIANCES UNDER FEMA / RBI
Applicable
Laws/Acts
Due Dates Compliance Particulars Forms / (Filing mode)
FEMA ACT 1999 14.08.2020
(extended)
Annual Return on Foreign liabilities and assets
The FLA return is required to be submitted by the
companies who have received Foreign direct
investment (FDI) and/or made Foreign direct
investment abroad in the previous year(s)
including the current year
FLA Return
FEMA ACT 1999 Monthly Basis External Commercial Borrowings
Borrowers are required to report all ECB
transactions to the RBI on a monthly basis
through an AD Category – I Bank in the form of
‘ECB 2 Return’.
ECB 2 Return
FEMA ACT 1999 Not later than 30
days from the date
of issue of Capital
instrument.
FC-GPR is a form filed when the Indian company
receives the Foreign Direct Investment and the
company allots shares to a person resident
outside India.
Form FC-GPR
FEMA ACT 1999 With in 60 days of
receipt/ remittance
of funds or transfer
of capital
instruments
whichever is earlier.
Reporting of transfer of shares and other eligible
securities between residents and non-residents
and vice- versa is to be made in Form FC-TRS.
The onus of reporting shall be on the resident
transferor/ transferee.
Form FC-TRS.
FEMA ACT 1999 within 30 days from
the date of receipt of
the amount of
consideration.
A Limited Liability Partnership receiving amount
of consideration and acquisition of profit shares is
required to submit a report in the Form FDI LLP-1
Form FDI LLP-I
FEMA ACT 1999 within 60 days from
the date of receipt of
funds in
A Limited liability Partnership shall report
disinvestment/ transfer of capital contribution or
profit share between a resident and a non
resident (or vice versa)
Form FDI LLP-II
FEMA ACT 1999 within 30 days from
the date of allotment
of capital
instruments
The domestic custodian shall report the issue/
transfer/ of sponsored/ unsponsored depository
receipts
Downstream
statement -Form DI
IMPORTANT UPDATES:
1. The due date for submission of FLA for the year 2019-20 is extended to August 14, 2020.
2. RBI Extends Timeline For Finalisation Of Audited Accounts For Applicable NBFCs: every applicable NBFC
shall finalise its balance sheet within a period of 3 months from the date to which it pertains or any date as
notified by SEBI for submission of financial results by listed entities.
3. RBI COVID 19 Regulatory Complete package
The Reserve Bank of India (RBI) has released 21st Issue of the Financial Stability Report (FSR), on 24th
July 2020 which reflects the collective assessment of the Sub-Committee of the Financial Stability and
Development Council (FSDC) on risks to financial stability, and the resilience of the financial system in
the context of contemporaneous issues relating to development and regulation of the financial
sector.
RBI has discussed about various relaxation due to COVID 19 via Press Conferences.
Regulatory package – COVID-19
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 37
Liquidity Measures Rationale/Impact
Targeted long-term repo operations
(TLTRO) - RBI conducted term repo
auctions of up to 3-year tenor for a total
amount of Rs. 1,00,000 crore for investing
in corporate bonds, commercial papers
and non- convertible debentures with
concessionin MTM guidelines.
Borrowing costs in financial markets have dropped to their lowest in a
decade on the back of abundant liquidity. Interest rates on 3-month CPs
(NBFC), 3-month CPs (non-NBFC) and 3-month CDs have softened by
around 320 bps, 365 bps, 472 bps, respectively between March 23,
2020 and June 30, 2020. The spread of 3-year AAA-rated Corporate
Bond (CB) over similar tenor government securities has decreased
from 320 bps on March 26, 2020 to 114 bps on June 26, 2020 for NBFCs.
Lower borrowing costs, coupled with deployment of TLTRO funds,
have led to record primary issuance of corporate bonds of `2.09 lakh
croreinthefirstquarterof 2020-21.
To enable better transmission of its
monetary policy, RBI introduced Long Term
Repo Operation (LTRO) under which RBI
conducted term repos of one year and
threeyeartenorsatpolicyreporate.
(*LTROs of `1 lakh crore each were
announced on Feb 06, 2020 and Mar 16,
2020 of which auction for a total of
`1,25,000 crores have been conducted so
far).
Abundant liquidity conditions along with 3-year LTROs have anchored
the short-term G-sec yields closer to the policy repo rate. The 3-month
T-Bill yield has dropped around 195 bps since LTRO announcement in
February and has generally remained lower than the reverse repo rate
consistently since March. The 3-year G-sec yield too has droppedby158
basis points while the 10-year yield has dropped by 74 bps between
announcementofLTROsandJuly10,2020.
The government securities market has remained resilient and the G-
Sec yields have remained in tight-range despite significant
enlargement of government borrowing programme and increase in
the borrowinglimitof state governments.
JULY 2020
RBI CIRCULARS / NOTIFICATIONS:
GHAZIABAD CHAPTER E-NEWSLETTER Page 38
The policy repo rate was brought down from 5.15 per cent on March 27, 2020
to 4 per cent on May 22, 2020. The Marginal Standing Facility (MSF) rate was
reduced from 5.40 per cent to 4.25 percentwhilethe reverse repo rate under
the Liquidity Adjustment Facility (LAF) wasreducedfrom4.90percentto3.35
percent.TheMonetaryPolicyCommittee(MPC)also decidedtocontinuewith
the accommodative stance for as long as it is necessary to revive growth and
mitigate the impact of COVID-19 on the economy while ensuring that
inflationremainswithintarget.
To lower borrowing costs and revive growth prospects.
CRR reducedby 100 basispoints to 3 percentof NDTL.UnderMSF,bankswere
allowedtoborrowby dipping up to 3 per cent into SLR.
Reduction in CRR led to injection ofliquidity of around `1,37,000 croreinto the banking system whileenhancement in MSF ceilingenabledthemfor bettermanagementof day to dayliquidity.
S. N. Particulars of the Circulars Link
1 Special liquidity scheme for NBFCs/HFCs https://www.rbi.org.in/Scripts/NotificationUs
er.aspx?Id=11925&Mode=0
2 Master Circular on SHG-Bank Linkage Programme https://www.rbi.org.in/Scripts/NotificationUs
er.aspx?Id=11927&Mode=0
3 Master Circular – Lead Bank Scheme https://www.rbi.org.in/Scripts/NotificationUs
er.aspx?Id=11926&Mode=0
4 Distressed Assets Fund - Subordinate Debt for Stressed
MSMEs
https://www.rbi.org.in/Scripts/NotificationUs
er.aspx?Id=11933&Mode=0
5 Credit flow to Micro, Small and Medium Enterprises Sector https://www.rbi.org.in/Scripts/NotificationUs
er.aspx?Id=11934&Mode=0
6 Exemption from Registration as NBFC – Alternative
Investment Fund (AIF)
https://www.rbi.org.in/Scripts/NotificationUs
er.aspx?Id=11936&Mode=0
7 Fair Practices Code for Asset Reconstruction Companies https://www.rbi.org.in/Scripts/NotificationUs
er.aspx?Id=11937&Mode=0
8 Implementation of Indian Accounting Standards https://www.rbi.org.in/Scripts/NotificationUs
er.aspx?Id=11940&Mode=0
9 Indian Stamp Act, 1899 Amendments and Rules made
thereunder
https://www.rbi.org.in/Scripts/BS_PressRelea
seDisplay.aspx?prid=50033
10. RBI Working Paper No. 08/2020: Subnational Government
Debt Sustainability in India: An Empirical Analysis
https://www.rbi.org.in/Scripts/BS_PressRelea
seDisplay.aspx?prid=50037
11. Are Dynamic Shifts Underway in the Indian Economy?
(Shri Shaktikanta Das, Governor, Reserve Bank of India - July
27, 2020 – Addressed to CII National Council, Mumbai)
https://www.rbi.org.in/Scripts/BS_SpeechesV
iew.aspx?Id=1098
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11925&Mode=0https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11927&Mode=0https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11926&Mode=0https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11933&Mode=0https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11934&Mode=0https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11936&Mode=0https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11937&Mode=0https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11940&Mode=0https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=50033https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=50037https://www.rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=1098
2. COMPLIANCE REQUIREMENT UNDER INCOME TAX ACT, 1961
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 39
Applicable
Laws/Acts
Compliance Particulars Due Dates Revised
Due Dates
Income Tax
Act, 1961
Filing of original return for the Assessment Year 2019-20 u/s 139 (1) 30-07-2020 30-09-2020
Income Tax
Act, 1961
Filing of belated return for the Assessment Year 2019-20 u/s 139 (4) 30-06-2020 30-09-2020
Income Tax
Act, 1961
Filing of revised return for the Assessment Year 2019-20 u/s 139 (5) 30-06-2020 30-09-2020
Income Tax
Act, 1961
TDS/ TCS Return for quarter ending 31.03.2020 (Q4 of F.Y. 2019-20) for
Government Offices
30-06-2020 15-07-2020
Income Tax
Act, 1961
TDS/ TCS Return for 31.03.2020 (Q4 of F.Y.
2019-20) quarter
30-06-2020 31-07-2020
Income Tax
Act, 1961
Date of issuance of TDS
certificate to employees in form 16A and other in form 16
15-07-2020 15-08-2020
Income Tax
Act, 1961
Investments for claiming deduction under Chapter-VIA-B of the IT Act which
includes section 80C, 80D, 80G etc. for the A.Y. 20-21 i.e. F.Y. 19-20
30-06-2020 31-07-2020
Income Tax
Act, 1961
Investment/ construction/ purchase for claiming roll over benefit/ deduction
in respect of capital gains under sections 54 to 54GB
30-06-2020 30-09-2020
Income Tax
Act, 1961
Furnishing of Form 24G by an office of the Government for the month of:
• February 2020
• March 2020
• April to November 2020
05-03-2020
30-04-2020
Within 15
days from
the end of
the month
15-07-2020
15-07-2020
31-03-2020
Income Tax
Act, 1961
New procedure for registration, approval or notification entities under u/s
10(23C), 12AA, 35 and 80G
01.06.2020 01.10.2020
Income Tax
Act, 1961
Form 24QB, 24QC and 24QD of February and March 2020 (Section 200 read
with Rule 31A or Section 206C read with Rule 31AA)
30-03-2020
30-04-2020
30-06-2020
Income Tax
Act, 1961
Date of filing of declaration and payment of tax under VI VAD SE VISH WAS 30-06-2020 31-12-2020
Income Tax
Act, 1961
Due date for any of the following actions, except mentioned above, under
the the Wealth-Tax Act, 1957, Income-tax Act, 1961, Prohibition of Benami
Property Transactions Act, 1988, Chapter VII of Finance (No. 2) Act, 2004
(dealing with Securities Transaction Tax), Chapter VII of Finance Act, 2013
(dealing with Commodities Transaction Tax), Black Money (Undisclosed
Foreign Income and Assets) and Imposition of Tax Act, 2015, Chapter VIII of
Finance Act, 2016 (dealing with Equalisation Levy) and Direct Tax Vivad se
Vishwas Act, 2020 by any Authority, Commission or Tribunal:
20-03-2020
to
31-12-2020
31-03-2021
JULY 2020
GHAZIABAD CHAPTER E-NEWSLETTER Page 40
➢ IMPORTANT UPDATES:
1. PAN-Aadhaar linking deadline FURTHER extended to beyond JUNE, 2020
2. The due date for linking of PAN with Aadhaar as specified under sub-section 2 of Section 139AA of the
Income-tax Act,1961 has been extended from 31st December, 2019 to 31st March, 2020 and further
extended to 31st March, 2021 due to COVID – 19 outbreak.
2. Government to infuse Rs 50,000 crores liquidity by reducing rates of TDS, for non-salaried specified
payments made to residents, and rates of Tax Collection at Source for specified receipts, by 25% of the
existing rate.
3. Due date of Tax audit has been extended from 30th September 2020 to 31st October 2020.
4. The IT department has extended the date to issue form 16 tds certificates for its employees till 30th
November concerned for FY 2019 – 20
5. The last date to deposit TDS Deducted under section 194IA for the month of march is on or before 30th
April of 2020.
6. In June, the government had extended the date for making investment, construction, purchase for
claiming deduction in respect of capital gains under Sections 54 to 54GB of the Income Tax Act to
September 30, 2020. Section 54 relates to tax exemptions available from capital gains if the capital gains
are invested in purchase or construction of residential property. Therefore, the investment, construction,
purchase made up to September 30, 2020 shall be eligible for claiming deduction from capital gains.
Income Tax
Act, 1961
• passing order
• issuance of notice, intimation, notification,
sanction or approval
• completion of proceedings
• any other action
• filing of appeal, reply, application
• furnishing of reports, document, return, statement or any such record
20-03-2020
to
31-12-2020
31-03-2021
Income Tax
Act, 1961
Due date for any of the following actions, except mentioned above, under: the
Wealth-Tax Act, 1957, Income-tax Act, 1961, Prohibition of Benami Property
Transactions Act, 1988, Chapter VII of Finance (No. 2) Act, 2004 (dealing with
Securities Transaction Tax), Chapter VII of Finance Act, 2013 (dealing with
Commodities Transaction Tax), Black Money (Undisclosed Foreign Income and
Assets) and Imposition of Tax Act, 2015, Chapter VIII of Finance Act, 2016
(dealing with Equalisation Levy) and Direct Tax Vivad se Vishwas Act,
2020 by the Taxpayers and/or Authority:
• filing of appeal, reply, application
• furnishing of reports, document, return, statement or any such record
20-03-2020
to
31-12-2020
31-03-2021
JULY 2020o IMPORTANT NOTIFICATIONS:
GHAZIABAD CHAPTER E-NEWSLETTER Page 41
S.
No
Particulars of the Notification(s) File No. / Circular No. Notification Link(s)
1 One-time relaxation for Verification of tax-
returns for the Assessment years
201S-16, 2016-17, 2017-18, 2018-19 and
2019-20 which are pending due to non-filing
of ITRV form and processing of such returns
- reg.
Circular No. 13/2020/
F. No. 225/59/2020/ITA-1I
https://www.incometaxindia.gov
.in/communications/circular/circ
ular_13_2020.pdf
2 Clarification in relation to notification issued
under clause (v) of proviso to
section 194N of the Income-tax Act, 1961
(the Act) prior to its amendment by Finance
Act, 2020 (FA, 2020)-Reg
Circular No.14/2020
F. No. 370142/27/2020-TPL
https://www.incometaxindia.gov
.in/communications/circular/circ
ular_14_2020.pdf
3 Notification of Sovereign Wealth Fund under
section to(23FE) of the Income-tax Act, 1961
Circular No. 15 of 2020
F No 370142/26/2020-TPL
https://www.incometaxindia.gov
.in/communications/circular/circ
ular_15_2020.pdf
4 Income-tax (16th Amendment) Rules, 2020 Notification No. 43/2020/F.
No. 370142/11/2020-TPL
https://www.incometaxindia.gov
.in/communications/notification
/notification_43_2020.pdf
5 Notification of Harmonised Master List of
Infrastructure Sub-sectors for the purposes
of section 10(23FE) of the Income-tax Act,
1961
Notification No. 44/2020/F.
No. 370142/24/2020-TPL
https://www.incometaxindia.gov
.in/communications/notification
/notification_44_2020.pdf
6 The National Pension Scheme Tier II- Tax
Saver Scheme, 2020.
Notification No. 45 /2020/F.
No.370142/26/2019-TPL
https://www.incometaxindia.gov
.in/communications/notification
/notification_45_2020.pdf
7 ‘National Aviation Security Fee Trust’ (PAN
AADTN2508F)
Notification No. 46 /2020/F.
No. 300196/07/2020-ITA-I
https://www.incometaxindia.gov
.in/communications/notification
/notification_46_2020.pdf
8 Notification u/s 138 (1)(ii) of the Income-tax
Act, 1961 under PM-KISAN Yojana
F. No. 225/49/2019-ITA.II
Notification No. 51 /2020
https://www.incometaxindia.gov
.in/communications/notification
/notification_no_51_2020.pdf
9 Notification u/s 138 of the Income-tax
ACt,1961 in respect of Intelligence Bureau,
Cabinet Secretariat, National Investigation
Agency and Narcotics Control Bureau
F. No. 225/53/2020-IT A.II
Notification No. 52 /2020
https://www.incometaxindia.gov
.in/communications/notification
/notification_no_52_2020.pdf
https://www.incometaxindia.gov.in/communications/circular/circular_13_2020.pdfhttps://www.incometaxindia.gov.in/communications/circular/circular_14_2020.pdfhttps://www.incometaxindia.gov.in/communications/circular/circular_15_2020.pdfhttps://www.incometaxindia.gov.in/communications/notification/notification_43_2020.pdfhttps://www.incometaxindia.gov.in/communications/notification/notification_44_2020.pdfhttps://www.incometaxindia.gov.in/communications/notification/notification_45_2020.pdfhttps://www.incometaxindia.gov.in/communications/notification/notification_46_2020.pdfhttps://www.incometaxindia.gov.in/communications/notification/notification_no_51_2020.pdfhttps://www.incometaxindia.gov.in/communications/notification/notification_no_52_2020.pdf
JULY 2020
3. COMPLIANCE REQUIREMENT UNDER GOODS & SERVICES TAX ACT, (GST) 2017
Keep