Weekly Taxation Newsletter Period 20/07/2022 to 26/07/2022

Dear Readers,

We are delighted to share our 84th E-Newsletter “Weekly Taxation Newsletter” dated 26th July, 2022 from 20th July, 2022 to 26th July, 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.

                                                                                                                                                                                                     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, 194-IB, 194-IM, in June 2022.

30.07.2022

2.

Quarterly TCS certificate in respect of tax collected by any person for the

quarter ending June 30, 2022.

30.07.2022

3

Quarterly statement of TDS deposited for the quarter ending June 30, 2022.

31.07.2022

 

4

Return of income for the FY 2021-22 for all assessee other than:

·         corporate-assessee

·         non-corporate assessee (whose books of account are required to be audited) or

·         partner of a firm whose accounts are required to be audited

·         Assessee who is required to furnish a report under section 92E.

 

31.07.2022

5

Quarterly return of non-deduction of tax at source by a banking company

from interest on time deposit in respect of the quarter ending June 30, 2022.

31.07.2022

  • Under the GST, 2017
  • A. GSTR – 4 – Apr-June, 2022:
Compliance Particular

Due Date

GSTR-4 is annual return filed by a registered person opting for a composition scheme. The due date was extended from 30.06.2022 to 28.07.2022 by the 47th GST Council meeting.

 

28.07.2022

B. CMP – 08 – CMP-08 is a form that declares the composition dealer summary of his/her self- assessed taxable amount for a particular quarter. In addition to this, it also acts as challan to make payment of taxes

Compliance Particular

Due Date

Form GST CMP-08 is used to declare the details or summary of self-assessed tax payable by taxpayers who have opted for composition levy. Extended by 47th GST Council meeting.

 

31.07.2022

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

Update: Major    

Attention: Attention: Taxpayers with AATO in excess of Rs 20 Crore are also required to generate e-invoice for their outward supplies w.e.f. 1st April, 2022.

  • Weekly Departmental Updates: Income Tax
1.    Aaykar Diwas or Income Tax Day celebrates by CBDT on July 24

 The Central Board of Direct Taxes (CBDT) observed the 162nd Income Tax Day (also known as Aaykar Diwas) on 24 July 2022. The purpose of this tax was to compensate for the losses incurred by the British regime during the first war of independence against British Rule in 1857. The day was first celebrated in 2010.

On 24 July 1980, Income Tax was introduced for the first time in India by Sir James Wilson. The purpose of this tax was to compensate for the losses incurred by the British regime during the first war of independence against British Rule in 1857.

2.    Federal Bank ties up with CBDT to launch online tax payment services

Federal Bank has partnered with the Central Board of Direct Taxes to assist taxpayers in making their payments via the e-pay tax facility in the income tax e-filing portal. “Anyone can now pay their taxes instantly via any of their payment modes such as debit/credit card, UPI, net banking, cash, NEFT/RTGS,” the bank said in a statement. With this partnership, Federal Bank said it had become one of the pioneers to be registered under Tin 2.0 platform of the Income Tax Department.

The Bank had received approval from the Centre for direct tax collection last financial year and made effective since July 1. In a first, there is no requirement of PAN/TAN registration/verification for taxpayers and it takes away any delay in payment of tax. With this

partnership, Federal Bank becomes one of the pioneers to be registered under Tin 2.0 platform of Income Tax Department.

Anyone can now pay taxes instantly through modes such as Debit/Credit Card, UPI, Net banking, cash, NEFT/RTGS etc. The NRIs, domestic customers and any tax-paying citizen can generate tax challan and make payments through the bank’s branches.

3.     ITR filing: File today and avoid stress, Income Tax department instructs taxpayers

The last day for filing income tax return (ITR) for the financial year 2021-22 (FY22) is fast approaching. The due date to file the annual ITR for salaried taxpayers and non-auditable cases is July 31.

“Don’t forget to file ITR for AY 2022-23 before 31st July 2022. File today and avoid the stress of filing last minute!,” the Income Tax department tweeted on Saturday.

The due date to file ITR is approaching!Don’t forget to file ITR for AY 2022-23 before 31st

July 2022.File today… https://t.co/Hnqu8ZEVkv

  • Income Tax India (@IncomeTaxIndia) 1657951481000

Although ITR might be filed after deadline passes, a late filing fee might be imposed on him/her. If the individual’s yearly income is above Rs 5 lakh per annum, the late fees will be Rs 5,000. If the income is below Rs 5 lakh per annum, the late fee is Rs 1,000.

There are many different types of ITR forms including ITR-2, ITR-3 and ITR-4. Individuals need to make sure they are filling the appropriate form applicable to their situation.

4.     ITR 2021-22: How does a belated income tax return differ from regular one?

The last date to file the income tax return (ITR) has been fixed at July 31, 2022, by the income tax department (I-T department). It is mandatory to file the ITR for people with an annual income greater than Rs 2.5 lakh. However, sometimes a taxpayer might miss the July 31 deadline.

In that case, they can file a belated ITR up to December 31, 2022. A belated ITR is filed after the due date, while a regular ITR is filed before the due date.

The belated ITR also attracts a penalty. If the annual income is less than Rs 5 lakh per annum, Rs 1,000 must be paid along with the belated ITR. If the income exceeds Rs 5 lakh per annum, the fine amount is Rs 5,000.

If there is an unpaid income tax after July 31, 2022, an interest of 1 per cent is applicable on the outstanding amount. This is irrespective of whether the tax amount was filed wrong by mistake or not. Source: Read full at Click Here

  • Important Circulars and Notifications:
Sl.

Particulars of the Notification(s)

File No. /

Circular No.

Notification

Link(s)

1

Condonation of delay under Section 119(2)(b) of the Income-tax Act, 1961 in filing of Form No. 10BB for

Assessment Year 2018-19 and subsequent years

Circular No.

15/2022

Click Here

 

2

Condonation of delay under Section 119(2)(b) of the Income-tax Act, 1961 in filing of Form No.1 08 for Assessment Year 2018-19 and subsequent years – Reg.

Circular No.

16/2022

Click Here

3

Condonation of delay under Section 119(2)(b) of the Income-tax Act, 1961 in filing of Form No. 9A and Form No. 10 for Assessment Year 2018-19 and subsequent years Reg.

Circular No.

17/2022

Click Here

Weekly Departmental updates:  

GST Updates

  1. Availing ITC as per law and GSTR2B. Please refer News and Update section.
2.   GST on food to plug leakage: Revenue secretary

 Revenue secretary Tarun Bajaj has been seeking to ensure better compliance across tax payments and tells TOIthat the move to include packed and unbranded food items followed feedback from states and industry that the earlier regime was leading to leakage. Excerpts: On changes in GST.

Pre-GST too (before July 2017), there were several states that taxed pre-packed and unbranded food items. There was purchase tax in some cereal growing states.

After we changed the original GST formula, we were getting feedback from states that tax collections had come down and compliance was low as some companies, including some with prominent brands, were misusing the benefit. Industry too was complaining as a 5% tax arbitrage is significant in the food and FMCG business.

On GST Tribunals The group of ministers (GoM) will meet next week. What we have proposed is to have a judicial and administrative member in each tribunal and split the

members from the state and the Centre. A final decision will be taken based on the GoM’s

recommendations.

On windfall tax We will review it every fortnight since doing it every month may hurt oil companies during times when prices are falling.

On overall tax collections

 GST collections are looking good and point to healthy economic activity. Some people are saying that it may be due to inflation. The economy will grow 15-16% (in nominal terms) this year, so there is good buoyancy. We have given some concessions on products such as edible oil and pulses, which will have an impact on customs duty collections. But we are doing quite well on the direct tax front, growing around 37-38% in the first quarter. Let’s wait for the second quarter advance tax numbers. (Read more at: Click Here)

3.  GST on online gaming: No decision yet, GoM meeting to continue tomorrow, say sources

The Group of Ministers, headed by Meghalaya CM Conrad Sangma, was asked to re- deliberate the tax rate on horse racing, online gaming, casinos. Now, sources have told ET Now that no decision has been arrived at the meeting of GST GoM on online gaming. The GoM meeting will continue tomorrow, July 24 at Bengaluru.

Union Finance Minister Nirmala Sitharaman, after the conclusion of the two-day GST council meeting last month, had announced that the proposal to levy 28 per cent GST on casinos, online gaming, horse racing and lottery has been deferred.

While announcing the decision to defer the GST on online gaming, casinos, FM Sitharaman had said that whether horseracing, online gaming or casinos, the common thread as highlighted by the GoM is that they are all essentially gambling. She added that following Goa’s request for special treatment for casinos, it was decided that GoM will give one more hearing for online games and horseracing as well.

The group of ministers also decided to take an opinion on legal aspects of taxation on the three segments, according to sources. On online gaming, whether based on gambling or skill, both had been suggested at 28% in the earlier report. To read more Click Here

4. No GST on funeral services: Govt

The government on Wednesday said there is no Goods and Services Tax (GST) on funeral, burial, crematorium or mortuary services. The press Information Bureau (PIB) said in a social media post that claims to the effect there is GST on these services were misleading.

However, in the case of a works contract or a contract issued to carry out work such as construction, installation or maintenance, there is an 18% GST.

In this reference GST at the rate of 18% is only applicable for work contracts and not the services, PIB said.

“There is no GST on funeral, burial, crematorium or mortuary services. No change has been made in this,” said a government official, who spoke on condition of not being named.

“GST rate on works contract supplied to government and works contract for construction of roads, bridges, tunnels, railway, metro, effluent treatment plants, and crematorium etc. on which 12% rate applied earlier, has been revised to 18%. This has been done to correct inverted duty structure as inputs such as cement, steel etc. attract GST at the rate of 28%/18%. This has been done on the recommendation of the group of ministers,” said the official.

5. GST: Understanding how the rules around tax on rent will apply to tenants

Under the new goods and services tax (GST) rules, which came into effect on Monday, a tax of 18 per cent is now applicable to residential property rent. The tax will be charged according to the reverse charge mechanism (RCM), where the tenant will be liable to pay the GST.

However, it must be clarified that the salaried individuals, who have taken home on rent or lease, will not be required to pay any such tax. The new rule only applies if the person/ company has completed the GST registration.

What is GST registration?

 According to the rules, if a person/ company earns more than the set threshold limit per annum, they are liable to be registered under GST.

For individual service providers, like business consultants, the threshold is Rs 20 lakh per annum. For a business that makes money by selling products, the threshold is Rs 40 lakh per annum. This limit is set at Rs 20 lakh in the northeastern states.

What are the new GST rules for rent?

 If a service provider (with an aggregate income of more than Rs 20 lakh per annum) or a business (with aggregate income by selling products of more than Rs 40 lakh per annum) rents a house, they will be liable to pay the 18 per cent tax. However, for this, they must be registered under GST.

Businesses with a turnover of less than Rs 40 lakh per annum and salaried individuals are not required to pay the tax. Also, according to a Times of India report, if a company rents a home for its employee, there is no requirement to pay any GST. (Read more at Click Here)

5. OPS urges Centre to roll back 5% GST

Former CM O Panneerselvam on Friday urged state and central governments to roll back the hike in prices of Aavin products and 5% GST levied on pre-packed and labelled food items.

In a statement, Panneerselvam said that all sections were opposing the GST levy, which had severely affected the livelihood of poor and middle-income groups. People were also deeply upset over the state government increasing the prices of Aavin products, citing the decision of the GST council. “The DMK, while not in power, would immediately oppose the hike in GST rates or rise in fuel prices. It has accepted the decision to levy GST for pre-packed food at the council meeting while in power, which only exposed the DMK’s dual standards,” OPS alleged. (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 on Upcoming Changes in GSTR-3B

GSTN Cir. 550

Click Here

2

Introducing new Table 3.1.1 in GSTR-3B for reporting supplies u/s 9(5)

GSTN Cir. 549

Click Here

3

Implementation of mandatory mentioning of HSN codes in GSTR-1

GSTN Cir. 548

Click Here

4

FAQs on GST applicability on ‘pre-packaged and

labelled’ goods-reg.

F. No. 190354/ 172 /2022-TRU

Click Here

 

5

Authorisation under clause (c) of sub-rule (4) of rule 96 of the Central Goods and Services Tax Rules, 2017

09/2022-Central Tax (Rate)

Click Here

CUSTOM / EXCISE UPDATES

Links

Notification Particulars

 

Click Here

Seeks to amend notification No. 49/2021 – Customs, dated 13.10.2021, in order to extend the concessional Agriculture Infrastructure and Development Cess [AIDC] of Nil on Lentils (Mosur) up to and inclusive of the 31st March, 2023.

 

Click Here

Seeks to amend notification No. 22/2022-Customs, dated 30.04.2022 to enable TRQ holders to import gold through IIBX under TRQ mechanism of India-UAE CEPA .

Click Here

Compendium of orders/ circulars/ guidelines issued from WPC Wing, DoT in regard to Import licensing requirement from WPC wing for import of wireless equipment – reg

Click Here

Seeks to amend No. 10/2022-Central Excise, dated the 30th June, 2022, to reduce the Road and Infrastructure Cess on export of Petrol.

 

Click Here

Seeks to exempt the excisable goods, namely Petrol, Diesel and Aviation Turbine Fuel from Special Additional Excise Duty and Road and Infrastructure Cess when exported from units located in the Special Economic Zones (SEZ).

Click Here

Seeks to reduce the Special Additional Excise Duty on production of Petroleum Crude and export of Aviation Turbine Fuel.

Click Here

Seeks to amend No. 04/2022-Central Excise, dated the 30th June, 2022, to reduce the Special Additional Excise Duty on exports of Petrol and Diesel.

Click Here

Excisability of waste/ residue arising during the process of manufacture- Withdrawal of Circular No. 1027/15/2016-CX dated 25.04.2016-Reg.

Important Case-laws

Income Tax

1. Case Details: Talluri Vijay Rahul v. ITO

Citation: [2021] 127 taxmann.com 697 (Hyderabad – Trib.)

 AO rightly taxed fake agricultural income disclosed by a student in ITR to get an education loan: ITAT

The assessee filed an appeal before the CIT(A) and said that he was a student during the relevant year and did not derive any income. The ITR was filed under the guidance and advice of a tax practitioner who advised that if agricultural income were offered in ITR, he would get an educational loan from the bank. Since he did not have any source of income, additions made by AO were without any basis and should be deleted. However, the CIT(A) did not accept the assessee’s contention and upheld the order of AO. Aggrieved-assessee filed the appeal before the Tribunal.

The Tribunal held that assessee’s contention that he had been misguided by his tax practitioner year after year to declare agricultural income based on false documents couldn’t be accepted. The returns of income were not filed at one point but were filed year after year; therefore, the assessee’s bona fides were not proved. Therefore, AO had rightly treated fake agricultural income shown in ITR as ‘income from other sources’ and brought it to tax. Assessee’s grounds of appeal were liable to be rejected.

2. Case Details: Salzgitter Hydraulics (P.) Ltd. v. ITO
Citation: [2021] 128 taxmann.com 192 (Hyderabad – Trib.)
Amendment by the Finance Act, 2021 disallowing employee’s contribution to ESI/PF is
applicable prospectively

 The assessee filed the appeal against the order of the Commissioner of Income-tax (Appeals) [CIT(A)]. Assessee-company had contended that the CIT(A) erred in sustaining the addition on account of employees’ contribution to PF & ESI without considering that they were paid before the due date of filing the return of income (ITR). In contrast, AO’s stand was that the sum paid after the due date prescribed in the corresponding statutes should not be allowed as a deduction.

It should be noted that the legislature has incorporated necessary amendments in Sections 36(va) and Section 43B, vide Finance Act, 2021. Thus, after the amendment, the deduction of an employee’s contributions to ESI/PF is allowed only if the same is paid within the due date prescribed in corresponding statutes.

The memorandum explaining the Finance Bill, 2021 has stated that the given amendments are effective from 01-04-2021. Thus, it can be concluded that amendments are clarificatory and are applicable only with prospective effect from 1-4-2021.

Important Case-laws

GST Cases:

1.   GSTN Portal To Remain Open During September- October for Pre-GST Credit Forms, Directs SC

Goods and Services Tax (GST): In a major decision, the Supreme Court has directed the GSTN portal to be kept open between September 1 and October 31 for the registered assessees to upload TRAN-1 and TRAN-2 forms. This benefit has been extended to all GST-registered assessees.

CBIC released TRAN-1 and TRAN-2 forms to make businesses transition smoothly and carry forward their input tax credit. These were GST forms that allowed the assesees to transition the pre-GST credit to the GST regime. These forms can be filed by the registered business owner under GST who were already registered under the old laws of indirect tax.

Abhishek Jain, tax partner at KPMG in India, said, “This decision comes in light of the on- going dispute wherein various tax payers had contested that on account of technical glitches these forms could not be filed in timely manner, and even otherwise their right to transition the credit cannot be denied to them. This is a golden opportunity for the industry players irrespective of whether they were a party to the writ petition or not, and all businesses should look at any pre-GST credit that was not duly transitioned, in light of this SC judgment.”

Pre-packaged and pre-labelled retail pack, including pre-packed, pre-labelled curd, lassi and butter milk will now attract GST at the rate of 5 per cent, as opposed from their previous exempt status. Pulses, cereals like rice, wheat, flour and other such items, weighing below 25 kg or 25 litres, will also attract GST at the same rates. The new GST rate of 5 per cent will also apply on a package containing 10 retail packs of flour of 10 kg each. Reference: Click Here

  1. UP AAR: Transfer of Lucknow Airport to Adani, transfer of going concern, does not attract GST
Gujarat AAR ruled on a similar line for Ahmedabad Airport too

 Transfer of business from Lucknow Airport by Airport Authority of India (AAI) to Adani Enterprises will not attract Goods and Service Tax (GST), Uttar Pradesh’s Authority for Advance Ruling (UPAAR) has said.

This is the second ruling in the matter of airport transfer. Earlier, Gujarat AAR (GAAR) gave a similar ruling in the matter of the transfer of business of Ahmedabad airport to Adani Enterprises. Experts say though the AAR ruling is applicable only to the applicant and the

jurisdictional tax officer, it can be relied upon in similar matters. This means such rulings can help entities going for a transfer of going concern.

AAI moved to AAT to seek an advance ruling on a set of queries, including whether the supply of transfer of business to Adani Lucknow International Airport Limited be treated as a “Transfer of Going Concern” and whether such supply is covered under the exemption notification. After going through all the facts and arguments, AAR replied in the affirmative to both the questions. AAR also said that concession fees paid by Adani Lucknow International Airport AAI will not be treated as consideration for the transfer of business. Hence, GST will not be applicable on monthly or annual concession fees charged by AAI.

In response to a query about whether GST is leviable on the invoice raised by AAI for reimbursement of the salary/staff cost of Adani Lucknow International Airport, AAR said it will attract GST at the rate of 18 per cent.

The ruling also discusses the taxability of emoluments, which is very common in this type of business transfer. The AAR has ruled that emoluments paid to employees who are not getting transferred and continue to be on the payroll of the transferor would be a supply of manpower and hence a taxable activity under GST. “While AARs are not binding on other taxpayers, they do hold persuasive value. Therefore, reference can be drawn on the indicators covered in the ruling to structure slump sale transactions and optimise tax impact on such transactions,” Gupta said.

The criteria for the selection of private partners for Delhi and Mumbai airports was revenue share, whereas the selection criteria for six airports, viz., Lucknow, Ahmedabad, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram, was Per Passenger Fee (PPF) payable to AAI.

  • To read more: Click Here
  • International Taxation Corner (ITC)
1.   Indonesia calls for greater tax transparency among countries

Jakarta (ANTARA) – The Indonesian government is seeking greater tax transparency among countries, government spokesperson for the G20 Presidency, Maudy Ayunda, informed in Jakarta on Thursday.

“As the holder of the G20 presidency, Indonesia fully encourages an increase in tax transparency among countries. A fair and transparent international tax system is important to overcome tax evasion, prevent transfer pricing, and encourage conducive national tax policies,” Ayunda said, according to a statement issued in Jakarta on Thursday.

Tax is one of the largest sources of state revenue and is used to continue development and ensure the prosperity of the people. Tax transparency and exchange of tax information are

important for encouraging economic growth, especially in the post-COVID-19 recovery period. Tax transparency between countries would only have a massive impact if implemented collectively, she said.

The meeting was also attended by the Global Forum on Transparency and Exchange of Information of Tax Purposes, tax authority leaders from 13 Asian countries, members of global forums, and several international institutions, such as the Asian Development Bank (ADB), the World Bank, and the Study Group on Asian Tax Administration and Research.

Indonesia has also explored a series of assessments to become a full member of the Financial Action Task Force (FATF). By becoming a member of the FATF, Indonesia can play an important role in fighting tax evasion and promoting efforts toward global tax transparency.

 2.UK releases draft rules on global minimum tax

UK government, on July 20, released draft rules aimed at ensuring multinational enterprises (MNEs) operating within the UK pay a global minimum level of tax.

The draft rules are in line with the agreement on a 2 Pillar solution to reform the international tax framework made by the G20 — Organisation for Economic Co-operation and Development Inclusive Framework on Base Erosion and Profit Shifting (BEPS) last year.

The rules will apply to MNEs with annual global revenues exceeding 750 million euros that have business activities in the UK. A top-up tax will be charged on UK parent members when a subsidiary is located in a non-UK jurisdiction, and the group’s profits arising in that jurisdiction are taxed at below the minimum rate of 15%.

A UK parent member is an entity within the multinational enterprise group that holds a direct or indirect ownership interest in a foreign entity. The measure will have effect for MNE groups with fiscal years beginning on or after December 31, 2023.

In October 2021, over 130 countries in the Organisation for Economic Co-operation and Development Inclusive Framework reached agreement on a 2 pillar solution to reform the international tax framework in response to the challenges of digitalization. Pillar 2 is the second of the 2 pillar solution. To read more Click Here

3. VAT Registration: The biggest error made by service exporters

“But 100 per cent of my supplies are zero-rated. Isn’t VAT registration required only when VAT is payable or recoverable? I am neither recovering nor want to recover any VAT input credit”, the owner of a free zone service company asked me.

VAT registration threshold

 As UAE VAT is nearing 5 years of its implementation, almost all of us are aware that the threshold for mandatory VAT registration is AED 375,000 

To check the threshold, the laws require to aggregate inter-alia the turnover of ‘taxable supplies’ of the last 12 months or of the next 30 days. The turnover needs to be aggregated on a rolling basis and not on a calendar year basis.

It is the usage of the expression ‘taxable’ which leads to a confusion for the business owners. As no tax is payable on zero-rated supplies, business owners incorrectly assume that the VAT registration is also not applicable to them as if their supplies are not taxable.

Taxable supplies, the common mistake
  • The expression ‘taxable supplies’ has been defined to mean a supply of goods or services for a consideration by a person conducting business in the UAE, and does not include exempt supply.
  • All supplies except the exempt supplies are treated as ‘taxable supplies’. In other words, ‘zero-rated’ supplies are also taxable supplies.
  • “If you allow me to use tax jargons, it is not that the zero-rated supplies are not Such supplies are taxable at 0 per cent VAT rate”, I continued while reviewing their past revenue numbers.
  • It is a common mistake to assume that zero-rated supplies are not taxable
Exception from VAT registration
  • UAE VAT law is very pragmatic and supports ease of doing business. If 100 per cent supplies of a business are zero-rated, the law does not mandate to burden the business owners with periodic VAT compliances.
  • In the VAT-registration application itself, the applicant has an option to request for an exception from registration as 100 per cent of its supplies are exported (zero-rated).
  • FTA is not obliged to accept such requests and acceptance is at the FTA’s discretion. If the request for exception is approved by FTA, the business/applicant will not be required to submit periodic VAT return. The applicant is granted a Tax Identification Number (TIN) instead of a Tax Registration Number (TRN). A TIN Is also a 13 digit number suffixed with letters ‘XC’.
·         To read more Click Here

   Knowledge Bucket for NRI’s              

  • The Indian Income Tax Act, 1961, known as NRI taxes, relates to those who generate income outside of their place of residence. Before seeking a tax deduction on capital gains under sections 54, 54B, 54D, 54EC, 54F, 54G, 54GA, or 54GB, an individual’s gross total income must not exceed the basic exemption limit or else tax filing is
  • If an NRI purchases immovable property in India from a resident, he must deduct TDS at 1% if the sale consideration exceeds Rs 50 If the NRI purchases a property from a non-resident, and if long-term capital gains are applicable, then TDS should be deducted at 20%. In case short-term capital gains are applicable, TDS at 30% needs to

be deducted. Short-term capital gains are applicable when a property is sold within two years or less of acquiring it.

  • NRIs cannot buy agricultural land, a farmhouse or plantation property in India
  • NRIs can take home loans up to 80% of the overall value of the property
  • DO YOU KNOW ??
  1. Those who spend more than ₹1 lakh in electricity bills or deposit more than ₹1 crore in

current accounts would need to file ITRs on a mandatory basis.

  1. If a bank account’s cash deposits and withdrawals exceed ₹10 lakh in a fiscal year, and

Rs. 50 lakh in a current account, then it is mandatory to specify in IT return.

  1. You are still required to file a return of income if your total TDS/TCS is ₹25,000 as a general public and ₹50,000 as a senior citizen, ITR filing is required if you have a salary of 10 lakh or more per year or if your income from a business or profession exceeds Rs. 50 lakh.
  2. Any purchase or sale of real estate for ₹30 lakh or more must be disclosed on Form 26AS, as well as any investments in stocks, mutual funds, debt instruments, bonds, or payments on credit card debts that surpass ₹10 lakh should be specified in ITR.

 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.)

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