Latest Taxation and Finance Updates for March 2024 We are delighted to share our 139th E-Newsletter “Weekly Taxation Newsletter” dated 18th March, 2024 from 10th Mar. 2024 to 17th Mar., 2024 with you. This E – Newsletter is a weekly reference / compilation of interesting and latest news related to tax including upcoming Timelines / Due Dates, Notifications / Press Information, Case Laws, International Taxation etc.
It is a Weekly Newsletter on the followings important segments:
Upcoming Due Dates
Weekly Departmental Updates – Income Tax (IT) & GST
Important Circular & Notification – IT / GST / CBIC / Custom / Excise etc.
Important Case Laws in brief – IT & GST
International Taxation Corner
Knowledge Bucket for NRI
Do you know section
- Stay updated, Stay connected
- Due Dates under IT Act 1961
| Sl. | Compliance Particulars | Due Dates |
| 1 | Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA in the month of February, 2024 | 30.03.2024 |
| 2 | Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IB in the month of February, 2024 | 30.03.2024 |
| 3 | Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194M in the month of February, 2024 | 30.03.2024 |
| 4 | Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194S (by specified person) in the month of February, 2024 | 30.03.2024 |
- Under the GST, 2017
A. Filing of GSTR –3B / GSTR 3B QRMP
a) Taxpayers having aggregate turnover > Rs. 5 Cr. in preceding FY
| Tax period | Due Date | Particulars |
| Feb., 2023 | 20th March, 2024 | Due Date for filling GSTR – 3B return for the month of Feb, 2023 for the taxpayer with Aggregate turnover exceeding INR 5 crores during previous year. |
b). Taxpayers having aggregate turnover upto Rs. 5 crores in preceding FY (Group A)
| Tax period | Due Date | Particulars | |
| Feb., 2023 | 22nd March, 2024 | Due Date for filling GSTR – 3B return for the month of Feb., 2023 for the taxpayer with Aggregate turnover upto INR 5 crores during previous year and who has opted for Quarterly filing of GSTR-3B | |
| Group A States: Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, Daman & Diu and Dadra & Nagar Haveli, Puducherry, Andaman and Nicobar Islands, Lakshadweep | |||
c). Taxpayers having aggregate turnover upto Rs. 5 crores in preceding FY (Group B)
| Tax period | Due Date | Particulars | |
| Feb., 2023 | 24th March, 2024 | Annual Turnover Up to INR 5 Cr in Previous FY But Opted Quarterly Filing | |
| Group B States: Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, Jammu and Kashmir, Ladakh, Chandigarh, Delhi | |||
B. Non Resident Tax Payers, ISD, TDS & TCS Taxpayers
| Form No. | Compliance Particulars | Timeline | Due Date |
| GSTR-5 & 5A | Non-resident ODIAR services provider file Monthly GST Return | 20th of succeeding month | 20.03.2024 |
C. GST Refund:
| Form No. | Compliance Particulars | Due Date |
| RFD -10 | Refund of Tax to Certain Persons | 18 Months after the end of quarter for which refund is to be claimed |
D. Monthly Payment of GST – PMT-06:
| Compliance Particular | Due Date |
| Due Date of payment of GST for a taxpayer with Aggregate turnover up to INR 5 crores during the previous year and who has opted for Quarterly filing of return under QRMP. | 25.03.2024 |
- Weekly Departmental Updates: Income Tax
1. Three among top 5 electoral bond purchasers faced ED, Income Tax investigations: Report
Top three electoral bond buyers that donated to the major political parties between 2019 and 2024 under the now-scrapped poll bond scheme are corporate entities that faced investigations by the Income-Tax department and the Enforcement Directorate. According to an Indian Express report, the top three donors are – infra firm Megha Engineering, Future Gaming and mining giant Vedanta.
Future Gaming and Hotels Pvt Ltd is at the top spot in the buyers list. According to the data uploaded by the poll panel on its website, the company run by Santiago Martin bought electoral bonds worth Rs 1,300 crore in last five years. What’s interesting is that the Enforcement Directorate had launched an investigation against Future Gaming way back in 2019. By July of 2019, the ED had attached Future Gaming’s assets worth over Rs 250 crore. The IE report says that till April 2022, the probe agency had also attached movable assets of the company worth Rs 409.92 crore.
Case against Santiago Martin
As per the Enforcement Directorate, Future Gaming’s boss and others were part of the criminal conspiracy to violate the Lottery Regulation Act, 1998 provisions. It was also alleged that the company willfully cheated Sikkim Government for ‘wrongful gain’.
Before April, 2022, Future Gaming had bought its first tranche of poll bonds in October, 2020.
Megha Engineering and Infrastructures and the many probes
After Future Gaming, the second biggest poll bond buyer ss Megha Engineering and Infrastructures Ltd (MEIL). This Hyderabad-base company purchased bonds worth Rs 1,000 crore. The Indian Express report says that Income Tax department conducted raids at the offices of Megha Engineering in October 2019, the company. After this, the ED also launched a probe against the company. Notably, on April 12, 2019, Megha Engineering bought electoral bonds worth Rs 50 crore.
- To read more Click Here
2. ITR filing 2024: Here’s how to maximise income tax savings from Employees’ Provident Fund (EPF) account
The Employees’ Provident Fund (EPF) is a well-known retirement savings scheme in India, overseen by the Employees’ Provident Fund Organisation (EPFO). Under the scheme, the employer deducts a portion of an employee’s salary each month and puts it into a fund that earns interest. This money can be withdrawn after retirement. The employer contributes 12% of the basic salary plus dearness allowance to EPF and deducts another 12% from the employee’s salary; 8.33% of the employer contribution goes to the Employees Pension Scheme (EPS) which earns no interest.
For example, if your basic salary is ₹60,000 per month and your EPF contribution is Rs7,200 (12 per cent of basic salary), then you can claim a deduction of ₹86,400 (12 x ₹7,200) per annum under Section 80C. This will reduce your taxable income and subsequently lower your tax liability.
“Employee Provident Fund (EPF), popularly known as the Tax Saving PF, offers a compelling proposition for salaried individuals seeking secure retirement investment. With Section 80C allowing deductions of up to Rs. 1,50,000, tax-free interest accumulation, and complete exemption from income tax upon withdrawal post five years, EPF presents a win-win scenario for investors. Its unique EEE tax advantage, coupled with the assurance of financial security, makes EPF a cornerstone in effective retirement planning,” said Abhishek Soni CEO and Co-founder of Tax2win.
The EPFO has set a three-year high-interest rate of 8.25% on employees’ provident fund (EPF) deposits for 2023-24. Once approved by the government, this interest rate will be deposited into the accounts of over six crore EPFO subscribers.
- To read more Click Here
3. 5 crucial personal finance tasks to complete before March 31
The current financial year 2023-24 is coming to a close. March 31, 2024 marks not just the end of FY2023-24, but is also the deadline for many personal finance-related tasks, especially for investments, tax filing, and tax saving. Let’s look at the top five tasks you must not miss doing before this financial year concludes.
Filing Updated ITR
March 31, 2024, is the deadline to file an updated income tax return for FY 2020-21 (AY 2021-22). This deadline can be utilised by taxpayers who may have missed filing their returns for the said financial year previously, have missed reporting a part of their income or have provided incorrect income details when filing earlier.
Invest in tax-saving instruments for FY 2023-24
If you have opted for the old tax regime and want to invest in a tax-saving instrument for FY 2023-24, you must do it before Mar 31, 2024. There are plenty of tax-saving instruments under Section 80C, such as Public Provident Fund (PPF), Equity-linked Saving Schemes (ELSS), and term deposits that can help you achieve your tax-saving goals. Expenses such as health insurance premiums, education loans, and home loans are some other provisions that can get you a tax deduction on your income, and reduce your tax liability. Also explore other sections, such as 80D, 80G, and 80CCD(1B) which offer tax-deduction provisions under the old tax regime.
Minimum investment deadline
Government-backed saving schemes like PPF or the Sukanya Samriddhi Scheme (SSY) require a minimum investment of Rs.500 and Rs.250, respectively in a year. If you fail to make this minimum deposit in a financial year, your account could be marked as default, for which a penalty may be levied. So, if you have invested in either of these schemes but have not made a deposit in them during the current financial year, you have until Mar 31, 2024 to do so to avoid a default penalty.
- To read more Click Here
4. How to save tax: 6 easy income tax saving tips
Jan-Feb-March or JFM: It is that time of the year when many of us scramble to get our tax savings for the financial year. To help you with your tax-saving exercise for the financial year 2023-24, here are six easy tax-planning tips.
Your complete tax-saving guide.
1. Tax-saving instruments
Each fiscal year presents an opportunity to reduce your taxable income by up to Rs. 1.5 lakh through Section 80C deductions. These deductions are accessible to both individuals and Hindu Undivided Families (HUFs), allowing a maximum deduction of Rs. 1.5 lakh from your overall income under Section 80C. Thus, even if you’ve chosen the traditional tax regime, you can still leverage deductions up to Rs. 1.5 lakh under Section 80C. It’s essential to recognize, however, that these deduction provisions don’t apply if you’ve opted for the new tax regime.
2. Select appropriate components in salary structure
For salaried individuals, it’s advantageous to assess the salary structure provided by the employer and select components that optimize tax advantages. For instance, choosing House Rent Allowance (HRA) if renting, seeking reimbursement for telephone/internet expenses, education allowances, food coupons, etc., can be beneficial. Subsequently, one can claim relevant deductions/exemptions according to specified conditions when calculating taxable income.
3. Increase in EPF contribution
Salaried individuals have the option to consider making extra contributions towards the ‘Voluntary Provident Fund’ (VPF) alongside their EPF contributions if they haven’t reached the investment limit of Rs 1.5 lakh. These additional contributions can also be deducted from taxable income, subject to certain conditions. Furthermore, the employer’s contribution to the National Pension System (NPS), capped at 10% of salary, can offer additional deductions to the employee.
- To read more Click Here
- Important Circulars and Notifications:
| Sl. | Particulars of the Notification(s) | File No. / Circular No. | Notification Link(s) |
| 1 | Circular No. 4/2024 :Ex-post facto extension of due date for filing Form No. 26QE which was required to be filed during the period 01.07.2022 to 28.02.2023 (pertaining to F.Y. 2022-23) | Circular No. 04/2024 | Click Here |
| 2 | Advance Tax e-campaign for F.Y. 2023-24 | Press Release | Click Here |
| 3 | CBDT clarifies provisions relating to donations made by a trust / institution to another trust / institution for the purposes of application of income | Press Release | Click Here |
Weekly Departmental updates:
- GST Updates
1. Defaulters to pay reconnection charges and 18% GST with arrears: MSEDCL
MSEDCL has informed defaulters that power will not be resumed until the overdue amount is paid along with reconnection charges of ₹210 plus 18% GST.
The Maharashtra State Electricity Distribution Company Limited (MSEDCL) is disconnecting the power supply of consumers who haven’t paid their bills. What’s more, it has informed consumers that the power won’t be turned back on until the overdue amount is paid along with reconnection charges of ₹210 plus 18% Goods and Services Tax (GST). In February alone, the MSEDCL has disconnected over 44,000 power connections in western Maharashtra.
Ankush Nale, Pune regional director of western Maharashtra, said, “If electricity is disconnected due to unpaid bills, consumers must pay reconnection charges plus GST along with the arrears. The Maharashtra Electricity Regulatory Commission (MERC) has set these charges, ranging from ₹210 to ₹3,150, depending on the type of connection.”
Till date, the electricity supply of 44,972 consumers, including domestic, commercial and industrial users, has been disconnected due to unpaid bills. To avoid disconnection and additional fees, consumers should pay their outstanding bills promptly. Payments can be made online on the website http://www.mahadiscom.in or through the Mahadiscom mobile app. Additionally, RTGS or NEFT payment options are available for low-pressure customers with bills exceeding ₹5,000.
- Read more at: Click Here
2. MHA extends 50% GST support for central police canteen purchases | Details
The Ministry of Home Affairs (MHA) announced on Wednesday its decision to continue providing 50% financial assistance on Goods and Services Tax (GST) for purchases made from the central police canteen, known as “Kendriya Police Kalyan Bhandar”, effective from April 1, a measure is aimed at welfare enhancement.
According to a statement released by the ministry, the move is intended for “the benefit of serving and retired personnel of Central Armed Police Forces (CAPFs), Central Police Organisations, and State Police Forces and their families.”
The ministry statement said, “The Ministry of Home Affairs recognises and respects the hard work of force personnel in maintaining internal security of the Country and gives utmost importance to the welfare of CAPFs and their families.”
- (Read more at: Click Here)
3. Lok Sabha elections: GST e-way bills analytics to be tracked real time, says EC
The government is tracking the Goods and Services Tax GST e-way bills analytics real time due to an unusual spike in demand for some goods and services, the Election Commission of India said on March 16.
“GST e-way bills analytics will be tracked real time to track unusual spikes seen in the demand for some goods and services,” the Chief Election Commissioner Rajiv Kumar said in the press conference.
Under the goods and services tax (GST) regime, e-way bills are required for inter-state transportation of goods valued over Rs 50,000.
Businesses with turnover above Rs 5 crore are now supposed to generate e-way bills including e-invoice details for all B2B transactions from March 1, 2024.
- (Read more at: Click Here)
- Important Notifications under
Excise / Custom/ GST:
- GST Updates
| Sl. No | Particulars of the Notification(s) | File No. / Circular No. | Notification Link(s) |
| 1 | Advisory: Integration of E-Waybill system with New IRP Portals | GSTN 626 | Click Here |
| 2 | Advisory on GSTR-1/IFF: Introduction of New 14A and 15A tables | GSTN 627 | Click Here |
Custom / Excise Updates
| Links | Notification Particulars |
| Click Here | Seeks to amend notification No. 22/2022- Customs dated 30.04.2022, in order to notify third tranche of India-UAE CEPA |
| Click Here | Seeks to further amend No. 11/2018-Customs, dated the 2nd February, 2018, to exempt SWS on EVs imported under of the Ministry of Heavy Industries’ Scheme to promote manufacturing of electric passenger cars in India. |
| Click Here | Seeks to amend No. 50/2017-Customs, dated the 30th June, 2017 to give concession to EVs imported under of the Ministry of Heavy Industries’ Scheme to promote manufacturing of electric passenger cars in India. |
| Click Here | Seeks to amend notification No. 57/2017-Customs dated 30.06.2017 so as to modify BCD rates on certain smart wearable devices. |
- Important Case-laws
- Income Tax
1. Bribery cases: CBI nabs I-T officer, others
The Central Bureau of Investigation (CBI) on Friday arrested three accused including an income tax (IT) officer, a steno at the income tax office and a branch manager in two separate cases of bribery.
In the first case, CBI arrested IT officer Nitish Shukla and steno Alok Kumar in Fatehpur district for receiving a bribe of Rs 10,000 from a complainant.
A case was registered by CBI on a complaint alleging that the accused IT officer and steno demanded undue advantage of Rs 25,000 threatening to initiate a false report and imposing a fine against the complainant’s customer service portal if the bribe was not given.
In the second case, CBI arrested the branch manager of Aryavart Bank’s Ajnar branch in Mahoba, Vaibhav Khare while accepting a bribe of Rs 6,000 from a complainant. Tnn
CBI registers FIR against five accused including passport office officials on allegations of taking bribesCBI case against five accused at Ghaziabad Passport Office for bribery. Farhan Gaur facilitated payments. Accused obtained Rs1.57 lakh via UPI. Searches at Meerut, Muzaffarnagar. Bribes transferred to Bank Wallets of accused family members.108437468
- Source: Click Here
2. Confederation of Indian Pharmaceutical Industry (SSI) v. CBDT (2013) 353 ITR 388 (H.P.)
Is Circular No. 5/2012 dated 01.08.2012 disallowing the expenditure incurred on freebies provided by pharmaceutical companies to medical practitioners, in line with Explanation to section 37(1), which disallows expenditure which is prohibited by law?
The High Court held that the contention of the assessee that the above mentioned Circular goes beyond section 37(1) was not acceptable. As per Explanation to section 37(1), it is clear that any expenditure incurred by an assessee for any purpose which is prohibited by law shall not be deemed to have been incurred for the purpose of business or profession. The sum and substance of the circular is also the same. Therefore, the circular is totally in line with the Explanation to section 37(1).
However, if the assessee satisfies the assessing authority that the expenditure incurred is not in violation of the regulations framed by the Medical Council then it may legitimately claim a deduction, but it is for the assessee to satisfy the Assessing Officer that the expense is not in violation of the Medical Council Regulations.
- Important Case-laws
- GST Cases:
1. Record objections in GST case, HC tells casino firms
The high court of Bombay at Goa on Thursday directed casino companies to record their objections and join the adjudication process in the GST matter.
Casino companies approached the HC challenging showcase notices issued by the director of revenue intelligence demanding GST to the tune of Rs 11,139 crore for the period from July 2017 to March 2022, along with interest and penalty which can exceed Rs 22,250 crore.
The show-cause notice dated September 27, 2023 states that the companies have been non-compliant in discharging GST on the total bet value calculated, and instead have been discharging GST on consideration actually received by it.
The HC directed the director of revenue intelligence to furnish the investigation report to the casino companies within two weeks. The casino companies had alleged that there is no separate investigation report and that the investigation report is in fact the show cause notices issued to them. Even if the investigation report is not furnished, the casino companies cannot delay or avoid adjudication proceedings, the HC clarified.
The HC observed that the reasons for engaging the Indian Statistical Institute (ISI) were clearly disclosed to the casino companies, but they still insist they be informed of the reasons for engaging ISI. Source: Click Here
- International Taxation Corner (ITC)
1. MoF launches digital public consultation on implementation of Global Minimum Tax in UAE
The UAE Ministry of Finance (MoF) announced the launch of a digital public consultation to gather the views of relevant stakeholders on the implementation of the Global Minimum Tax (GMT) or Global Anti-Base Erosion Model Rules (Pillar Two) (GloBE Rules) as well as other tax matters in the UAE.
The consultation will be open from 15th March 2024 to 10th April 2024, and accessible via the Ministry’s website or the UAE’s Government Portal. The digital public consultation reflects the Ministry’s belief in the importance of consulting with all stakeholders including the multinational groups operating in the UAE, advisors, service providers, and investors.
The consultation is split into two parts – the first, is to gather the views of stakeholders concerning the potential policy design options for the implementation of the GloBE Rules in the UAE, in particular the development of a domestic minimum tax.
The second part of the consultation is to understand stakeholders’ views on the introduction of substance-based incentives to be applied in the UAE, which would form part of the UAE Corporate Tax regime. To familiarise stakeholders with the rules and to ensure informed feedback is received, the Ministry has issued a Global Minimum Tax briefing document alongside the consultation.
The UAE Ministry of Finance welcomes clear and concise comments with, where possible, examples, data, or other information to support views being put forward in the response to this consultation. The responses must be received by 10th April 2024 via its website (link here), and will remain confidential and will not be published.
- Source / Read more at: Click Here
2. Singapore Tax: Implications of Section 10L on Investment Funds
Historically, Singapore has not taxed capital gains. However, since 1 January 2024, under the newly enacted Section 10L of the Income Tax Act 1947 of Singapore, gains received in Singapore from the sale or disposal of any foreign asset (e.g. shares issued by a company incorporated outside Singapore) by an entity within a multinational group will be treated as taxable income if the entity does not have adequate economic substance in Singapore. Section 10L is designed to address international tax avoidance risks and align the key areas of Singapore’s tax regime with international norms and the European Union’s Code of Conduct Group’s foreign source income exemption (FSIE) guidance.
Section 10L prevails over all specific tax concession and exemption provisions, except for certain tax incentives in certain industries which are explicitly dealt with in Section 10L. Notably, the fund tax incentive schemes (e.g. sections 13D, 13O, 13U) are not explicitly included among those exceptions. This means that, in Singapore, gains from the sale of a foreign asset by an in-scope entity may be taxed under Section 10L going forward, notwithstanding that the disposal gains derived by the entity are capital in nature and such entity qualifies for income tax exemption under one of the investment funds sector-related exemptions. An exception to the taxation under Section 10L is that, if the in-scope entity has adequate economic substance in the basis period in which the sale or disposal occurs, the foreign-sourced disposal gains will not be brought to tax. However, none of the guidance issued to date has clearly defined the threshold for adequate economic substance, which causes uncertainty with respect to the application of Section 10L.
Similar legislative changes have been made in other major investment fund centres in the Asia Pacific region such as Hong Kong and Malaysia. Hong Kong, for example, has recently refined its FSIE regime, under which foreign-sourced disposal gains are deemed to be sourced from Hong Kong and chargeable to profits tax if the recipient entity does not meet the economic substance requirement or the participation requirement. Unlike Singapore however, Hong Kong’s FSIE regime explicitly excludes certain approved tax-exempt fund vehicles.
- Source / Read more at: Click Here
- Knowledge Bucket for NRI’s
- All income earned abroad is not taxable in India for NRIs. “Section 9 of the Income-tax Act governs which income accrues or arises in India.
- Any income that accrues or arises, or is deemed to accrue or arise in India, and any income that is received or deemed to be received in India will be taxed for NRIs.
- If the NRI does not have any income from business and profession, he can use ITR 2. If he does, he will have to use ITR 3.
- NRIs can opt for the old tax regime or the new regime with lower tax rate under Section 115BAC of the Income-tax Act.
- Do you know ??
- Bengaluru civic body extends last date to avail 5% rebate on property taxes.
- The finance ministry on Friday raised the windfall tax on sale of domestic crude oil to ₹4,900 per tonne, effective 16 March, 2024.
- A nine-judge constitution bench of the Supreme Court on Thursday reserved its verdict on a batch of petitions on crucial issues of whether royalty on minerals is a tax and if taxes levied additionally by states were legally permissible, observing that states rich in natural resources continued to be poor.
- Disclaimer:
Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. 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. *(We consider various sources including ET, BS, HT, Taxmann etc.)
