Weekly Taxation Newsletter Period: 11.01.2022 to 17.01.2022 “Weekly Taxation E-Newsletter”. Stay informed on the Latest Tax News, Due Dates, Updates, Circulars, International Tax, NRI Tax News and important Case Laws.
We are delighted to share our 60th E-Newsletter “Weekly Taxation Newsletter” dated 18th January, 2022 from 11th January, 2022 to 17th January, 2022 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.
Due Dates under IT Act 1961
|Sl.||Compliance Particulars||Due Dates|
|1||Quarterly TCS certificate in respect of quarter ending December 31, 2021.||30-01-2022|
|2||Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA in the month of December, 2021.||30-01-2022|
|3||Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IB in the month of December, 2021.||30-01-2022|
|4||Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194M in the month of December, 2021.||30-01-2022|
CBDT extends due dates for filing of Income Tax Returns and various reports of audit for Assessment Year 2021-22
|Type of Compliance Requirement (AY 2021-22)||Original Due Date||Extension vide Circular 9/2021||Extension vide Cir. 17/2021||Extension vide Circular 1/2022|
|Income Tax Return (Assessees subject to Audit): u/s 139(1) of the Income Tax Act, 1961||31/10/2021||30/11/2021||15/02/2022||15/03/2022|
|Income Tax Return (Assessees subject to Transfer Pricing Report): u/s 139(1) of the Income Tax Act, 1961||30/11/2021||31/12/2021||28/02/2022||15/03/2022|
|Tax Audit Report: under any Provision/ Section of the Income Tax Act, 1961||30/09/2021||31/10/2021||15/01/2022||15/02/2022|
|Transfer Pricing Report: u/s 92E of the Income Tax Act, 1961||31/10/2021||30/11/2021||31/01/2022||15/02/2022|
|Belated/ Revised Income Tax Return: u/s 139(4)/ 139(5) of the Income Tax Act, 1961||31/12/2021||31/01/2022||31/03/2022||No Change 31/03/2022|
Under the GST, 2017
A. Filing of GSTR –3B
a) Taxpayers having aggregate turnover > Rs. 5 Cr. in preceding FY
|Tax period||Due Date||No interest payable till||Particulars|
|December, 2021||20th January, 2022||–||Due Date for filling GSTR – 3B return for the month of June, 2021 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||No interest payable till||Particulars|
|December, 2021||22nd January, 2022||Due Date for filling GSTR – 3B return for the month of June, 2021 for the taxpayer with Aggregate turnover upto INR 5 crores during previous year and who has opted for Quarterly filing of GSTR-3B|
c) Taxpayers having aggregate turnover upto Rs. 5 crores in preceding FY (Group B)
|Tax period||Due Date||No interest payable till||Particulars|
|December, 2021||24th January, 2022|
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||20.01.2022|
C. Other Returns:
|Form No.||Compliance Particulars||Timeline||Due Date|
|CMP – 08||Quarterly challan-cum-statement to be furnished by composition taxpayers. Oct-Dec’21.||Quarterly – Oct. to Dec 2021||18.01.2022|
|ITC – 04||GST ITC-04 is to be filed to provide details of goods sent to Job Worker or received back.||Quarterly – Oct. to Dec 2021||25.01.2022|
D) 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|
- Taxpayers can now withdraw their application for cancellation of registration (filed in Form REG-16) unless the tax officer has initiated action on it.
- Aadhaar authentication of registered person is mandatory for filing of Refund/Revocation of cancelled registration applications w. e. from 1.1.2022.
Weekly Departmental updates: Income Tax
1. CBDT issues Rs 1.54 lakh crore refunds to taxpayers
The income tax department on Thursday said it has issued refunds of over Rs 1.54 lakh crore to more than 1.59 crore taxpayers so far this fiscal. This includes 1.20 crore refunds of Assessment Year 2021-22 (fiscal ended March 31, 2021), amounting to Rs 23,406.28 crore. This includes personal income tax refunds of Rs 53,689 crore to over 1.56 crore entities and corporate tax refunds of over Rs 1 lakh crore to more than 2.21 lakh businesses.
The taxpayers must note that more than 4.6 million ITRs were filed on the due date itself. In a statement, the I-T department said that its help desk attended to 16,850 taxpayer calls and 1,467 chats for a smooth customer experience. (Read more at: Click Here)
2. Tax deductibility of Covid expenditure tops corporate India’s Budget wish list
India’s top tax experts have proffered a budget wishlist ranging from allowing flexibility on Covid-19 related expenses to taxation on economic profits and reducing long-term capital gains for start-ups to aligning with global tax rates to boosting M&A activity.
Industry experts say that there have been various hiccups for several companies, and the government could come up with some tax-related leeway to boost economic growth further.
The government had earlier refused to permit the deduction of CSR expenses. The government could also look to reinstate a 200% weighted deduction for in-house R&D expenditure, said tax experts. In the last few years, the government has put special focus on large changes on the taxation side. The rate of tax on corporates has gone down to 15 per cent for new manufacturing companies and to 25 per cent for those corporates who do not avail of tax incentives.
Presently, the taxation system discriminates in favour of investments in public markets rather than private investments. Long term capital gains (LTCG) for listed securities are taxed at 10% without indexation (with a higher surcharge capped to 15%). As against the above, LTCG on unlisted securities is taxed at 20% (with a higher surcharge up to 37%), ” said Sudhir Kapadia, national leader-tax, EY India. To read more Click Here
3. Major income tax provisions applicable from current financial year for individual taxpayers
There are certain income tax provisions which have become applicable for the transactions carried out from the current financial year, which taxpayers should be aware of.
- Changed taxation rules for Unit Linked Insurance Policies (ULIP)
The amended rule will apply in case the premium paid for any year during its tenure exceeds Rs 2.50 lakh. Insurance companies will deduct tax on the difference at the rate of 5% in case the amount payable exceeds Rs 1 lakh during the year. The ULIPs which have minimum of 65% investments in equity products during their tenure will be taxed like equity mutual funds whereas for other ULIPs the difference between the premiums paid and the money received will get taxed.
2. Tax on interest earned on contribution made towards provident fund in excess of specified amounts
In order to give effect to this provision, the provident fund offices will maintain two separate provident fund accounts of the member where the interest is tax free and second where full interest is taxable for all the annual contributions over Rs 2.50 lakh or Rs 5 lakh as the case may be.
3. Extended period for availing the exclusive tax benefit on home loan for affordable housing
You are entitled to avail tax benefit in respect of interest upto Rs 1.50 lakh every year, paid on a home loan sanctioned between 1st April 2019 and 2021 for a house having stamp duty
valuation not over Rs 45 lakh over and above deduction available under Section 24(b). The deadline for getting the home loan sanctioned has now been extended till 31st March 2022 from the earlier deadline of 31st March 2021.
4. No requirement to file ITR for senior citizens on satisfying certain conditions
The senior citizens who receive pension will not have to file their ITRs if they furnish a declaration to the bank from where the pension is disbursed about their interest earnings provided they do not have a bank account with any other bank except the bank disbursing the pension and do not have any other income
To read more: Click Here
4. How to claim exemption on capital gains tax on residential property sale
Under the provisions given under Section 54GB, tax relaxation is provided to individuals or Hindu United Family (HUF) on capital gains arising out of the sale of residential property if the proceeds are invested in buying equity shares of a startup.
Finance Minister Nirmala Sitharaman, in the Union Budget 2021 -22, extended the income tax exemptions allowed on capital gains arising from sale of residential property if proceeds are invested in eligible startups.
If the amount of net consideration is equal to or less than the cost of the new asset then entire capital gains would be exempt and if the amount of net consideration is greater than the cost of the new asset then the proportionate capital gain would be calculated based on investment in new asset, capital gain and net consideration.
The extension coupled with a similar tax holiday extension given to eligible startups under the Union Budget 2021-22 should give incentives to promoters and investors in startups for a period of one year. (Read complete at Click Here)
5. India Budget 2022: Economists prescribe tax relief, higher capex
Economists want the government to do the heavy lifting in the February 1 budget to support economic recovery amid the wave of Covid infections, proposing higher allocations for capital spending and tax incentives to spur private investment.
Other suggestions include reduction in the goods and services tax (GST) for a limited duration to spur demand, front-loading of transfers to states, income-enhancing or support measures, and subsidised credit to small and medium enterprises and contact-intensive sectors.
Nomura recently lowered its GDP forecast for the March quarter to 3.2% from 5.2% projected earlier and to 8.7% for FY22 compared with 9.2% estimated earlier. The government pegged FY22 growth at 9.2% in the first advance estimates released last week, below the Reserve Bank of India’s 9.5% forecast.
India’s private final consumption expenditure, a measure of demand, is projected to rise a tepid 6.9% in FY22 from a year ago but is still 2.9% below the FY20 level.
(Read complete at Click Here)
Special Corner on Income Tax Return
Quick Steps to filing your income-tax returns smoothly
- Visit https://www.incometax.gov.in for e-filing the return of income.
- Create you login Id and Password on Income tax portal. (Register Yourself).
- Login to e-Filing portal by entering user ID (PAN), Password, Captcha code and click ‘Login’.
- Click on the ‘e-File’ menu and then click ‘Income Tax Return’ link.
- Select ‘Assessment Year’, Select ‘ITR Form Number’, Select ‘Filing Type’ as ‘Original/Revised Return, ‘Select ‘Submission Mode’ as ‘Prepare and Submit Online’ and then Continue.
- Fill all the applicable and mandatory fields of the online ITR form.
- Choose the appropriate Verification option in the ‘Taxes Paid and Verification’ tab.
- Click on ‘Preview and Submit’ button, Verify all the data entered in the ITR.
- Individuals should ensure that correct PAN, Aadhaar and TAN numbers are filed, and that the residential status is correctly determined and mentioned. They should also verify all the details filed in the ITR Form before final submission of the tax return.
- ‘Submit’ the ITR after complete check.
- The ITR filing process gets completed only on e-verification of ITR filed. There are various options available to e-verify tax return i.e. using Aadhaar OTP, using Net banking, using Demat account, using bank ATM, or by simply sending the signed physical copy of Form ITR-V to CPC Bangalore.
The taxpayer must ensure that PAN and Aadhaar are linked (date for linking is currently extended to March 31, 2022) and the Indian mobile number is active to ensure smooth e-verification of returns filed. Once the e-verification is complete, tax authorities consider the return to have been filed.se one discovers any error after filing tax return, then there is the option to file a revised India tax return within a prescribed timeline.
Key Point–Must remember:
- Provide your valid Email ID and mobile number while Registration.
- On Income Tax Return Page: PAN will be auto-populated.
- Use your Form 26AS to summarise your TDS payment for all the 4 quarters of the assessment year.
- Read the instructions carefull
Income tax Return: Documents needed to file ITR
- You need to select appropriate ITR form.
- Primarily you need PAN, Aadhaar card and bank statements for the financial year.
- You also need the Form 16 issued by the employer and Form 16 issued by any other entity.
- You need Form 26AS (downloadable from the income tax portal) to check how much TDS was deducted and by who.
- Details of income from other sources.
- You also need capital gains and share trading statement.
- You may also need investment documents such as PPF (Public Provident Fund), NSC (National Savings Certificate), life insurance, medical insurance, NPS (National Pension System), investment in other tax-saving instruments.
- Interest and principal repayment certificates of housing loan and donation receipt is also needed while filing ITR.
Important Circulars and Notifications
|Sl.||Particulars of the Notification(s)||File No. / Circular No.||Notification Link(s)|
|1.||Extension of timelines for filing of ITRs and various reports of audit for the Assessment Year 2021-22– reg||Circular No. 01/2022||Click Here|
|2.||Central Government hereby notifies for the purposes of the said clause, ‘International Financial Services Centres Authority’||Circular No. 03/2022||Click Here|
|3.||Income tax (1st Amendment) , Rules, 2022.||Circular No. 06/2022||Click Here|
|4||Income Tax Department conducts searches in Kerala||Press Release ID 1788947||Click Here|
Weekly Departmental updates
1.Aadhaar authentication of registered person is mandatory
for filing of Refund/Revocation of cancelled registration applications w. e. from 1.1.2022.
2. Telcos seek refund of Rs 35,000 crore input tax credit, GST waiver on licence fee, SUC
Telecom operators want the government to refund input tax credit (ITC) of around Rs 35,000 crore, reduce levies and waive GST on licence fees and spectrum usage in the upcoming Budget. According to pre-Budget recommendations of telecom industry body COAI, whose members include Vodafone Idea, Bharti Airtel and Reliance Jio, the telecom sector wants the government to suspend universal service obligation fund (USOF), which financially supports rollout of telecom services in the rural area, to reduce burden on the service providers.
“The credit would further increase with the upcoming significant capital expenditure to further enhance customer experience and achieve the vision of Digital India,” COAI said. At present, licence fees paid by the telecom operators is calculated as 8 per cent of revenue earned from telecom services, technically called adjusted gross revenue (AGR). To read more Click Here
3. Budget expectations: Insurance sector seeks additional deductions and lower GST
As the Budget day approaches on February 1, 2022, here are some of the pre-Budget expectations from the leading voices of the insurance sector. Life insurance is a critical component in ensuring the nation’s financial protection.
Insurance remains one of the indispensable parts of your portfolio, especially during the testing times of COVID-19. It not only provides financial cushion at the time of need but also offers tax benefits incentivising more people to safeguard their families. As the Budget day approaches on February 1, 2022, here are some of the pre-Budget expectations from the leading voices of the insurance sector:
An increase in deduction for medical insurance premium to incentivise wider coverage for medical insurance and increase in the overall deduction for specified investments under section 80C would go a long way in boosting disposable income for the individual taxpayers who are one of the major contributors to government’s direct tax revenues.
To read more Click Here
4. One held for issuing fake GST invoices worth RS 4,500 crore
The Directorate General of GST Intelligence has busted a racket which was involved in providing fake invoices worth Rs 4,500 crore to 636 firms and have arrested its mastermind.
During a series of search operations tracing fake firms in Delhi, DGGI officials found a company which was maintaining financial data on cloud. After further probe, the proprietor of one such firm was traced to Kolkata who was remotely maintaining data on the server in Delhi.
The investigation revealed that on questioning the proprietor admitted that these firms had not supplied any goods and have issued invoices involving taxable value of approx. Rs 4,521 crore, which have Input Tax Credit (ITC) implication of approx. Rs 741 crore.
To read more Click Here
5. Industries seek simplification of GST
Associations for industries and tax professionals have submitted their recommendations to the Union finance ministry for the Union Budget 2022-23. Players from the information technology sector have urged for a special incentive to set up new facilities and expand operations. Simplification of GST and compliance has again emerged as one of the key demands of industries from across sectors.
To read more Click Here
Important Notifications under Excise / Custom/ GST
|Sl. No.||Particulars of the Notification(s)||File No. / Circular No.||Notification Link(s)|
CUSTOM / EXCISE UPDATES
|Notification No. & date of Issue||Links||Notification Particulars|
|03/2022 – Customs (N.T.) d.t 14.01.2022 (Customs)||Click Here||Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg.|
|02/2022-Customs (ADD), dt. 13.01.2022 (Customs)||Click Here||Seeks to rescind Notification No. 49/2017-Customs (ADD), dated the 17th October, 2017, to remove levy of ADD on Colour coated / pre-painted flat products of alloy or non-alloy steel originating in or exported from China PR and European Union.|
1. Topic: Disbursement of income as per revenue-sharing agreement was the diversion of income by overriding title: ITAT
Assessee-company was a special purpose vehicle (SPV) incorporated primarily to execute the Commonwealth Games Village (CGV) project at New Delhi for housing the athletes and officials participating in the CWG 2010.It was mutually agreed that holding company of assessee, i.e., M/s Emaar MGF Land Private Limited to provide entire finance and guarantees and in lieu thereof, it would take 25% of the revenue out of the sale proceeds of the project. AO held that such transfer of 25% of the gross revenue was nothing but sham and was arranged to reduce tax liability of the assessee.
The Delhi Tribunal held that assessee was under the obligation to part away with the source of income to the holding company and it was not its volition alone, to give away the revenue that could have been otherwise accrued to them.
The flats to be constructed, by the assessee were the source of income, and the holding company had created a lien over 25% for a quid pro quo thereof and therefore took away 25% shares from the sale proceeds.
The assessee acts as a collector of revenue for the holding company of the receipt to the extent of 25% of the sale proceeds. The 25% belongs to the holding company by virtue of the contributions made and the agreement entered.
The flats to be constructed, by the assessee were the source of income, and the holding company had created a lien over 25% for a quid pro quo thereof and therefore took away 25% shares from the sale proceeds. The assessee acts as a collector of revenue for the holding company of the receipt to the extent of 25% of the sale proceeds. The 25% belongs to the holding company by virtue of the contributions made and the agreement entered.
2. Sudip Rungta v. DCIT –  113 taxmann.com 295 (Kolkata – Trib.)
Topic: ‘Performance Bonus’ doesn’t form part of salary for calculation of ‘House Rent Allowance’
The assessee submitted Form 16 before the AO during the course of assessment proceedings. AO asked the details of rent paid and calculation of exemption claimed in respect of House Rent Allowance (HRA) under section 10(13A). The assessee submitted a written explanation before AO.AO held that the Income-tax Rules, 1962 read with section 10(13A) clearly stipulates that any commission or bonus linked with the turnover or performance to be treated as salary. ‘Performance Bonus’ received by the assessee cannot be comprehended as an allowance or perquisite as defined in Rule 2(h) of the Fourth Schedule to be excluded from the purview of ‘salary’.Thus, he denied the benefit of the exemption on the ground that the assessee’s salary inclusive of performance bonus comes to an amount, 10% of which exceeds the actual rent paid by the assessee.
On further appeal, the ITAT held that Kerala High Court in the case of CIT v. B. Ghosal (125 ITR 444) held that the performance bonus doesn’t form part of the salary defined under rule 2A(h) for the purpose of section 10(13A). The basic salary for the purpose of computation of HRA exemption shall not include performance bonus. Thus, the AO was directed to computing HRA without including the amount of ‘performance bonus’as part of basic salary.
1. No GST on healthcare services under membership plans by multi-super speciality
Healthcare services provided under a membership scheme run by multi-super specialty hospitals to its members and their families were not taxable and will not face goods and services tax, according to a recent tax ruling by Gujarat Authority for Advance Ruling.
The Gujarat Authority for Advance Ruling (AAR) has held that healthcare services, where multi-super specialty hospitals take a lump-sum amount in form of membership to provide services to their family, would not attract GST.
The ruling came in response to an application by Divyajivan Healthcare LPP. It had approached the AAR seeking clarity on levy of GST on a membership plan in its proposed multi-super specialty hospital.
The Authority held that the scope of supply of services by the applicant was ‘health care services’ by a clinical establishment, which were exempted from GST.
The Authority for Advance Rulings is a quasi-judicial body that assesses the potential tax liabilities for transactions beforehand. Its rulings are case-specific, but they have a persuasive impact on the tax assessment in cases of other firms under similar circumstances.
Reference: Click Here
2. 1% GST for sweets, namkeens sold over the counter, rules Karnataka AAR
The Karnataka Authority for Advance Ruling (KAAR) has said that a sweet shop making and selling sweets and snacks over the counter will have to pay Goods and Services Tax (GST) only at the rate of 1 per cent, provided it is under the composition scheme. . ,
The decision is significant as restaurants opting for the composition scheme have to pay GST at the rate of 5 per cent. Also, a sweet shop that is not opting for the composition scheme will have to pay for the shops and namkeen at different rates.
In the said case the applicant, Chikkaveeranna Sweet Stall located at Bengaluru, is the owner of a sweets stall and is engaged in manufacturing of sweets and making counter sale on retail basis. It filed an application for advance decision with a query: “For composition tax payers, what is the applicable rate of GST for manufacture of sweets and namkeen and selling of goods over the counter, having no restaurant or hotel facilities or any is not part. and not giving for human consumption at the place of shop.
Since the implementation of GST, there have been many decisions related to sweets and namkeen shops on various issues. For example, last year, the Authority for Advance Ruling (AAR) of West Bengal ruled that sale of sweets, snacks and bakery items from a sweet parlor should be treated as supply of goods, if they are served or consumed in the parlor. and accordingly ITC can be availed in respect of these goods.
In 2018, the Uttarakhand AAR ruled that if a sweet shop is also providing dining facilities within the premises, it will be treated as restaurant services and to pay GST at the rate of 5 per cent along with ITC. will be liable. This decision can help a sweet shopkeeper with a single rate as all types of sweets attract GST at the rate of 5 per cent, cakes and pastries at 18 per cent, non-branded bhujia at 5 per cent and branded bhujia at 12 per cent. GST is levied from
Source: Click Here
INTERNATIONAL TAXATION CORNER (ITC)
1. India may take a step closer to the global tax deal
The Union budget for FY23 is likely to offer guidance on India’s adoption of a global deal endorsed by over 135 countries last year to check tax avoidance by businesses, a major milestone in the evolution of corporate taxation.
The finance ministry is examining the enabling legislative provisions needed to be incorporated into the Income Tax Act to adopt the new framework, and guidance on this is expected in the Union budget, said a person familiar with the discussions in the government. However, detailed provisions may come later, depending on the result of negotiations, said the person who spoke on condition of anonymity.
The proposed new framework entails India getting taxation rights over offshore tech firms serving domestic customers and a ‘top-up’ tax on parents of companies with arms in low-tax countries where the corporate tax rate is below 15%. India has agreed to roll back its equalization levy or digital economy tax on offshore tech firms serving local customers once the new global tax deal is in force.
Experts said the framework for a global minimum tax would be implemented through domestic tax laws of countries while reallocation of large digital economy firms’ profits would be done through a multilateral treaty.
“Taxpayers in general, and multinationals in specific, seek certainty and predictability in the policy. Therefore, it is useful if the government can specify both the income inclusion rule for the capture of global income, which is subject to minimum taxation and the sunset of the equalization levy. (Read more at: Click Here)
2. GCC corporate taxes: Tax compliance transformation
Corporate tax is an important direct tax levied on the taxable profits of business entities. Around the world, corporate tax rates have been dropping, from highs of over 50 per cent to around the 20 per cent range, as economies compete to attract inward foreign investment. The GCC, however, is an exception that bucks the trend. Here, these taxes are instead being introduced for the first time, rationalised as a switch towards tax compliant country-status in the global economy. This, in turn, is being driven by the pressure exerted from the Organisation for Economic Cooperation and Development (OECD) and G20 countries on tax havens and low tax jurisdictions to implement more transparency and stricter compliances. Regulations such as economic substance regulations, country by country reporting, and transfer pricing regulations, among others, have been adopted by many GCC countries recently.
Four out of the six GCC countries have corporate tax regimes and the other two, the UAE and Bahrain, are in serious discussions to introduce one in 2023. This is in the aftermath of talks between the finance ministers of G7 countries and the recent OECD’s Pillar Two model rules for the domestic implementation of 15 per cent global tax unveiled on December 20, 2021. The new Pillar Two model rules will help countries legislate the Global Anti-Base Erosion (GloBE) rules domestically in 2022, to come into effect from 2023.
Tax treaties play an important role in mitigating corporate tax for non-residents, forming permanent establishments in other countries, or reducing their withholding tax exposure in the four GCC countries. The GCC countries have introduced and are actively using technology for corporate tax compliances whereby contracts, tax returns and declarations are being filed online into portals. This allows tax authorities to cross verify information easily and initiate tax audits where there are discrepancies versus acceptable standards. Taxpayers must be extra vigilant in compliances as many jurisdictions do not allow tax returns to be revised.
Read more at: Click Here)
Knowledge Bucket for NRI’s
- The main condition for opening a NRE / NRO account is that the person must be a Non- Resident Indian (NRI). The residential status of a person is to be determined for every financial year separately.
- When NRIs come to India for a short visit, they can continue the account as NRE savings account. However, if NRIs come back to India for good, they are not allowed to maintain the NRE savings account.
- An NRE / NRO account is used by NRIs to deposit their foreign earnings to be used for transacting in India. NRE / NRO account may be in form of savings account, current account or deposits.
- NRIs may use NRE / NRO accounts for making investments in India such as mutual funds.
- Interest from NRE account is tax-free only for non-residents. As soon as you return to India, any interest earned on NRE account will be taxable.
Do you know ?
- India’s cryptocurrency market has seen exponential growth over the past few years. It is expected that the investment by Indians in cryptocurrency could touch $241 million by 2030. Currently, India has the highest number of crypto owners globally, at 10.07 crore, as per a recent study by Nasscom and WazirX.
- The last date for filing of tax audit report has been extended to Feb 15, 2022 and for returns to March 15, 2022.
- The due date of furnishing of return of income for the financial year (2020-21) (assessment Year 2021-22), which was 30th November, 2021 under sub-section (1) of section 139 of the Act, as extended to 31st December, 2021 and 28th February, 2022 by Circular No.9/2021 dated 20.05.2021 and Circular No.17/2021 dated 09.09.2021 respectively, is further extended to 15th March, 2022.
- The Chartered Accountants Association Surat (CAAS) has filed a writ with the Gujarat High Court requesting that no penalty, interest, or late fees be imposed on taxpayers until the new income tax portal is glitch-free. According on CAAS’s Twitter account the association has also requested the setting up of Grievance Redressal Committee and honouring Citizens Charter.
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.)