- Due Dates under IT Act 1961
| Sl. | Compliance Particulars | Due Dates |
| 1 | Quarterly TCS certificate in respect of tax collected by any person for the quarter ending June 30, 2024 | 30.07.2024 |
| 2. | Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA for the month of June, 2024 | 30.07.2024 |
| 3 | Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IB for the month of June, 2024 | 30.07.2024 |
| 4 | Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194M for the month of June, 2024 | 30.07.2024 |
| 5 | Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194S (by specified person) in the month of June, 2024 | 30.07.2024 |
| 6 | Quarterly statement of TDS deposited for the quarter ending June 30, 2024 | 31.07.2024 |
7 | Return of income for the assessment year 2024-25 for all assessee other than (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) partner of a firm whose accounts are required to be audited or the spouse of such partner if the provisions of section 5A applies or (d) an assessee who is required to furnish a report under section 92E. | 31.07.2024 |
| 8 | 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, 2024 | 31.07.2024 |
| 9 | Statement by scientific research association, university, college or other association or Indian scientific research company as required by rules 5D, 5E and 5F (if due date of submission of return of income is July 31, 2024) | 31.07.2024 |
| 10 | Intimation in Form 10BBB by a pension fund in respect of each investment made in India for quarter ending June, 2024 | 31.07.2024 |
| 11 | Intimation in Form II by Sovereign Wealth Fund in respect of investment made in India for quarter ending June, 2024 | 31.07.2024 |
- Under the GST, 2017
A. 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 |
B. Non Resident Tax Payers, ISD, TDS & TCS Taxpayers
| Form No. | Compliance Particulars | Timeline | Due Date |
| GSTR -7 | Return for Tax Deducted at source to be filed by Tax Deductor | 10th of succeeding month | 10.07.2024 |
| GSTR -8 | E-Commerce operator registered under GST liable to TCS | 10th of succeeding month | 10.07.2024 |
- Weekly Departmental Updates: Income Tax
1. How to save 100% income tax? Karnataka man’s 3-step formula is going viral. Watch video here
All your queries on how to save income tax could probably have a solution as Karnataka man shares popular “hack”. Kerala content creator Shrinidhi Hande’s satirical video about the same, has gone viral online. The video comes days after the 2024 budget announcement by Finance Minister Nirmala Sitharaman, introducing major changes in the new tax regime. Ever since, how to save tax, has become a hot topic of debate and jibe.
A resident of Udupi, Hande starts off his video by claiming that income tax can be saved through a “very easy, legal and simple process.” What follows, is a detailed step-by-step list.
‘Grow grass in your home’
“Step one: You have to grow grass in your home or on your balcony or on your terrace, and it is a very, very legal process,” explained Hande.
“Now, go to the HR and tell them you don’t want any salary. They would be happy. Tell your HR that your company should buy grass from you to the tune of your salary. If your salary is Rs50,000, maybe they can buy 50 strands of grass for Rs1,000 each. Completely legal process,” he added.
- To read more Click Here
2. Income tax clearance mandatory to leave India? Centre issues a clarification. Here’s what it says
The Central Board of Direct Taxes (CBDT) has issued a clarification regarding Section 230 of the Income Tax Act, 1961 over reports that claimed a mandatory tax clearance was needed before leaving the country.
Responding to the reports, which created a significant stir, the CBDT said Section 230 does not mandate every individual domiciled in India to secure a tax clearance certificate before departure.
How much tax do I have to pay? Calculate now
The requirement applies only under specific circumstances. According to the CBDT’s Instruction No. 1/2004, dated February 5, 2004, a tax clearance certificate is necessary only for individuals involved in serious financial irregularities or those with significant direct tax arrears exceeding Rs. 10 lakh, provided these arrears have not been stayed by any authority.
In such cases, the individual’s presence is deemed crucial for investigations under the Income-tax Act or the Wealth-tax Act, and a tax demand is anticipated.
Moreover, the issuance of a tax clearance certificate is not an arbitrary process. It requires documented reasons and prior approval from the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax. The certificate confirms that the individual has no outstanding liabilities under various tax laws, including the Income-tax Act, Wealth-tax Act, Gift-tax Act, Expenditure-tax Act, and now, the Black Money Act, 2015, as proposed in the recent Finance (No. 2) Bill, 2024. To read more Click Here
3. Budget proposal opens door for new disclosure scheme
From Sept 1, based on the new budget proposal, if the income tax department conducts a search and seizure operation on income tax payers, they can come out clean by simply paying a 60% tax on the undisclosed income.
In contrast, if the income tax department discovers undisclosed income during a simple survey or investigation, or if a taxpayer has inadvertently omitted any income from their tax return, the taxpayer must pay a total of 84% in tax, surcharge, cess, and penalty, as well as interest on top of that.
Income tax experts have expressed their disagreement with this disparity and have called for simplification and rationalization to be implemented in cases of survey and investigation as well.
Tax experts point out that the block assessment scheme, which was in effect for search and seizure cases from 1995 to 2001, has been reintroduced under the new budget proposals. It will be implemented starting Sept 1, 2024, and according to the scheme, block assessment for the relevant year of the search and the preceding six years will be carried out.
- To read more Click Here
4. Income Tax Return: Does missing July 31 deadline mean losing out on old tax regime benefits? Details here
The deadline to file income tax return (ITR) for financial year 2023-24 is July 31. It is a well-known fact but what most taxpayers are not aware is that the deadline is highly unlikely to be extended. If you recall, a similar situation happened last year. A large number of taxpayers were hoping for the deadline to get extended as a convention. But at the eleventh hour, they faced a rude shock that the deadline was NOT going to be extended.
Situation is not too distinct this time around. While there is a chatter, and some demands that the deadline to file income tax return may (or should) get extended, it is perhaps as unlikely and uncertain as the roll-back of revision of provision of capital gains tax.
Let us understand what do you stand to lose if you fail to file income tax return before July 31.
1. Losing out on exemptions given in old tax regime: When you miss the July 31 deadline, you would not be able to file your return after this date under the old tax regime because for financial year 2023-24, new tax regime is the default regime. This effectively means you will not be able to avail exemptions and deductions against investments in tax-saving instruments.
After July 31 deadline, taxpayers will not be able to claim these benefits since they will be shifted to the new tax regime wherein these benefits are absent.
2. Late filing fee: As we are aware that missing July 31 deadline for filing ITR means the income tax department can impose a late filing fee of ₹5,000 under Section 234F of the Income Tax (I-T) Act. However, the late filing fee is slashed to ₹1,000 if your income is below ₹5 lakh.
3. No carry forward of loss: If taxpayers happened to incur losses because of their investment in stock market, mutual funds, properties or any of their businesses, they have the option to carry forward these losses and offset them against income in the subsequent years.
- To read more Click Here
- Important Circulars and Notifications:
| Sl | Particulars of the Notification(s) | File No. / Circular No. | Notification Link(s) |
| 1 | Notification No. 01/2024-25 : Specifying Forms prescribed in Appendix-II of the Income Tax Rules 1962, to be furnished electronically under sub-rule (1) and sub-rule (2) of Rule 131 of the Income-tax Rules, 1962 | Notification No. 01 / 2024-25 | Click Here |
Weekly Departmental updates:
- GST Updates
1. Rice sold in bags above 25 kg may attract GST, retail prices likely to be affected
One may be need to pay more for rice sold in loose quantities greater than 25 kg as it is not classified as an ‘agricultural farm produce.’ This may be possible because of the latest circular issued by the Central Board of Indirect Taxes & Customs (CBIC) based on recommendations of the GST Council.
Meanwhile, a senior CBIC official told businessline: “This interpretation seems correct. However, we have not received any representation from industry as of now. Once we get, we will look into the concerns.”
The circular, dated July 15, seeks to clarify the scope of expression ‘pre-packaged and labelled’ for levying GST on the supply of agricultural farm produce following an amendment made in Legal Metrology (Packaged Commodities) Rules, 2011. The GST Council recommended amending the notification. Based on that, the circular states: “Supply of agricultural farm produce in package(s) containing a quantity of more than 25 kilograms or 25 litres will not attract GST levy of 5 per cent.”
Processing shift
Rice is the final product obtained by milling the paddy by a rice miller. In addition to the processing by the cultivator, milling is done by the miller which is neither done by the producer nor the cultivator. The essential character of the paddy has also been changed to ‘Rice’ which is readily consumable but paddy is raw and requires certain milling processes including husking, steaming, de-browning, polishing and shorting. Considering these processes, various rulings have held that rice cannot be ‘Agricultural Produce’.
The whole issue of ‘pre-packaged and labelled’ came into light, when based on the recommendation by GST Council and subsequent notification, CBIC said that with effect from July 18, 2022, items such as pulses, cereals like rice, wheat, and flour (atta), etc., would attract GST when ‘pre-packaged and labelled’ provided they are sold in a single package containing a quantity of more than 25 kg, Now the apprehension is that flour and pulses may be treated the same as rice for applying GST if sold in loose from a more than 25 kg bag.
- Read more at: Click Here
2. GST amnesty scheme: A step forward or a missed opportunity?
The proposed introduction of a new amnesty scheme through the insertion of Section 128A in the CGST Act in this budget aims to alleviate the burden of interest and penalty on taxpayers for tax matters arising between July 1, 2017, and March 31, 2020 (or a part thereof). While this initiative is a step in the right direction, its scope and design present several shortcomings that could hinder its effectiveness.
The scheme covers taxpayers who have received notices or orders under Section 73 (excluding fraud cases) or those who have filed appeals against such orders. It offers a waiver of interest and penalty upon full tax payment. However, the scheme’s potential to address the core issues plaguing taxpayers is limited by several factors.
Firstly, the scheme’s insistence on full tax payment for all disputed issues within a notice or order is a major impediment. Taxpayers often face multiple issues in a single notice, with varying degrees of merit. There are many common issues for the industry on which demand is raised in show cause notices (SCNs). For example, an invoice missing in GSTR-2A / 2B but available with the taxpayer, taxing PAN India turnover of the taxpayer in one state, etc. On all such issues, the taxpayer has no choice but to continue with litigation. The inability to settle disputes selectively prevents taxpayers from taking advantage of the scheme for genuine cases while contesting those with stronger grounds.
Secondly, the scheme covers tax matters arising between July 1, 2017, and March 31, 2020 (or part thereof). In case a single SCN is issued under Section 73 for a period beyond the tax period covered by the amnesty scheme, a question may arise whether the scheme is available for the period till March 31, 2020 (or part thereof) or whether the scheme is not at all available. This point requires clarification from the government.
To maximise the scheme’s effectiveness, the government must address these issues promptly. Allowing tax payments through ITC, permitting issue-wise settlements, and providing clear guidelines on transitional credit are necessary. Additionally, engaging with industry stakeholders to gather feedback on the scheme’s implementation would be beneficial.
- (Read more at: Click Here)
3. Budget 2024: No GST demand notice to be issued beyond 42 months from the due date of filing annual return; Know how it will help you
The time limit for sending GST demand notices and orders has been streamlined in Budget 2024. Budget 2024 introduced a new section 74A in the CGST Act. Under the new regulations, a GST officer is permitted to issue a Goods and Services Tax (GST) demand notice only within 42 months from the due date of filing the GST annual return. Additionally, GST demand orders must be issued within 12 months from the date of the GST demand notice.
“This amendment changes the time limit for issuing assessment notices to 42 months from the due date of the annual return for the financial year, and the same shall apply uniformly across all types of taxpayers. For example, FY 2024-25, with the annual return due on 31st December 2025, the deadline for issuing GST demand notices will be 30th June 2029,” says Siddharth Surana, Director, RSM India.
Impact of this amendment for GST registered individuals and others
This proposed amendment establishes a uniform timeframe for issuing GST demand notices and orders, regardless of whether the case involves fraud or not. You now know the specific deadline for receiving a GST demand notice regardless of whether it was a section 73 or 74 notice.
What were the earlier time limits for GST notices?
As per Surana, under the GST laws, tax recovery proceedings can be initiated under section 73 (for cases without fraud, willful misrepresentation, or suppression of facts) and section 74 (for cases involving fraud, willful misrepresentation, or suppression of facts).
How the time limits for GST demand orders changed
As per Surana, the Finance Bill specifies a 12-month time limit from the notice issuance date for completing assessments and issuing orders. For instance, a notice issued on April 1, 2026, for FY 2024-25 requires an order by March 31, 2027, giving tax authorities more time for thorough assessments. “This time limit earlier was significantly shorter and was only 3 months from the date of issuance of notice,” he says.
- (Read more at: Click Here)
4. India says it plans to simplify GST rate regime in coming months
“Too many rates in goods and services tax are leading to classification disputes and that needs to be resolved,” Sanjay Agarwal, chairman of the Central Board of Indirect Taxes and Customs said in an interview Wednesday.
India is working on simplifying the country’s sales tax regime by introducing three slabs instead of the existing four rates, a top tax official said.
“Too many rates in goods and services tax are leading to classification disputes and that needs to be resolved,” Sanjay Agarwal, chairman of the Central Board of Indirect Taxes and Customs said in an interview Wednesday.
Agarwal said GST compliance has improved since the tax was introduced in July 2017 and revenue growth has stabilized. That gives the government room to review the rates to simplify the system, he said.
Agarwal said the government intends to simplify the GST structure by taking the existing slabs of 5%, 12%, 18% and 28% and combining it into three rates. The new rates would not impact the revenue collection adversely and the entire exercise “will be done in next few months.”
“High duty was leading to smuggling,” Agarwal said, adding that in 2023-24, the department had seized 4.8 tons of gold worth close to 2.9 billion rupees. The tax was imposed when the current account deficit was high, but since it’s manageable now, the government has reduced it to boost the sector, he said.
In reference to the 28% GST levied on online gaming last year, Agarwal said the government has collected over 130 billion rupees from the companies since Oct. 2023.
- (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 | Integrated Services from NIC-IRP e-invoice-1 and e-invoice-2 Portals | GSTN Update | Click Here |
| 2 | Refund of tax paid on Inward supply of goods by Canteen Store Department (FORM GST RFD 10A) | GSTN Update | Click Here |
| 3 | Advisory for FORM GSTR-1A | GSTN Update | Click Here |
| 4 | Advisory for Biometric – Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Uttarakhand | GSTN Update | Click Here |
| 5 | Gross and Net GST revenue collections for the month of June, 2024 | GSTN Update | Click Here |
CUSTOM / EXCISE UPDATES
| Links | Notification Particulars |
| Click here | Seeks to amend notification No. 45/2017-Customs dated 30th June, 2017 in order to extend the time period of re-import. |
Click here | Seeks to amend 32 notifications in order to extend their validity to a further period and amend notification No. 153/94-Customs to extend the time period for re-export of certain foreign origin goods when imported for maintenance, repair and overhaul. |
Click here | Seeks to amend notification no. 27/2011-Customs dated 1st March, 2011 in order to amend the export duty on specified items of raw hides, skins and leather. |
| Click here | Seeks to amend notification No. 57/2000-Customs dated 8th May 2000, which provides concessional rate for gold, silver and platinum imported under specified schemes. |
| Click here | Seeks to amend notification No. 154/94-Customs dated the 13th July, 1994 which provides for duty free import of commercial samples. |
- Important Case-laws
- Income Tax
1. Can payment to police personnel and gundas to keep away from the cinema theatres run by the assessee be allowed as deduction?
Neelavathi & Others (Karnataka High Court)
If the assessee had incurred expenditure for the purpose of security, the same would have been allowed as deduction. However, in the instant case, since the payment has been made to the police and gundas to keep them away from the business premises, such a payment is illegal and hence, not allowable as deduction.
- Important Case-laws
- GST Cases:
1. SEZ units exempt from IGST on certain services from DTA players: AAR ruling
Units operating within special economic zones (SEZs) could potentially be exempt from paying the integrated goods and services tax (IGST) on specified services taken from the domestic tariff area (DTA) through the reverse charge mechanism, if a ruling by the Gujarat-based Authority for Advance Rulings (AAR) sets a precedent.
To qualify for this exemption, these units will need to provide a letter of undertaking (LUT) or furnish a bond.
These services include services from goods transport agencies, legal services from advocates, security services, and hiring buses for employees.
Normally, providers of services have to pay Goods and Services Tax (GST) to the government, but it is the recipient of services who pays tax to the government on the reverse charge mechanism.
The AAR issued the ruling in a case involving the procurement of services by Surat-based SEZ unit —Waaree Energies Ltd — which is engaged in the manufacture of solar modules.
Frequently asked questions (FAQs) issued by the government in 2018 state that while the supplier of services in these cases is not liable to pay GST as the supply is under a reverse charge mechanism, SEZ has to pay IGST since the recipient is considered a deemed supplier.
The AAR observed that this clarification was given to a specific SEZ unit and is not a circular but there is no bar in borrowing the rationale of the clarification.
Hence, the authority ruled that Waaree Energies Ltd can procure the services without payment of IGST provided it furnishes LUT or bond as specified by the government.
- Source: Click Here
- International Taxation Corner (ITC)
1. UAE’s Federal Tax Authority launches tax professionals qualifications initiative
The UAE’s Federal Tax Authority (FTA) announced Wednesday it has launched a Tax Professionals Qualification Initiative – a programme aimed at training a new generation of tax experts. The initiative aligns with the authority’s vision of investing in human capital and promoting lifelong learning and development, reported state news agency WAM.
The initiative targets several groups, including new and current employees of the Federal Tax Authority, university students and graduates from government universities, and tax specialists.
It is also designed to enhance the tax system’s efficiency, support the Authority’s strategy, and help achieve its objectives. The initiative seeks to improve performance, promote continuous learning among Tax Agents, and enhance the efficiency of tax professionals. The authortity also aims to raise tax awareness among community members.
Khalid Al Bustani, the FTA’s director general, said the Tax Professionals Qualification Initiative aims to strengthen the Federal Tax Authority’s pioneering role in developing talent and human resources in the UAE. Read more at: Click Here
2. USA To Singapore, A Look At LTCG Of Other Countries Compared To India
Finance Minister Nirmala Sitharaman presented the Union Budget 2024 on Tuesday, July 23. The salaried middle-class income group was the most disappointed with this budget, especially due to the increase in taxes. The Long Term Capital Gains Tax (LTCG) has been increased from 10 percent to 12.5 percent. Short-term Capital gain tax (STCG) has been raised from 15 percent to 20 percent. For the benefit of the lower and middle-income classes, it was proposed to raise the limit of exemption of capital gains on certain listed financial assets. The increase was to be done from Rs 1,00,000 lakh to Rs 1.25,00,000 per year. This space articulates more information about the capital gains tax in other countries.
1. United States of America- Long-term capital gains, on dispositions of assets held for more than one year, are taxed at a lower rate (20 percent) in the US. Short-term capital gains may be taxed at a higher rate than long-term capital gains.
2. China: In China, the government levies a tax of 20 percent, on the profit on the sale of movable and immovable property. The government does not levy tax on the gains made on the purchase and sale of shares of listed companies in the stock market.
3. Japan: In Japan, the tax rates vary according to the asset class. An asset class is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. The maximum long-term capital gain tax on the sale of shares, land and property is 20 percent. The short-term capital gain tax is 39 percent. Read more at: Click Here
- Knowledge Bucket for NRI’s
- The finance ministry, in the Finance Bill, 2024, has proposed to add the reference of the Black Money Act, 2015, to the list of Acts, under which any person should clear his liabilities to obtain the tax clearance certificate.
- The budget 2024 proposes allowing individuals to inform employers about TCS payments, which can be factored into Tax Deducted at Source (TDS) calculations on salaries.
- Do you know ??
- As per section 230 of the Income-tax Act, 1961, every person is not required to obtain a tax clearance certificate. Only in the case of certain persons, in respect of whom circumstances exist which make it necessary to obtain a tax clearance certificate will be required to obtain such certificate.
- The FM has proposed rationalized slab rates under the new tax regime and allowed additional standard deduction of Rs 25,000 under the new tax regime, effectively making the total standard deduction as Rs 75,000 effective from AY 2025-26.
- The rate for short term capital gains tax on listed equity, equity oriented mutual funds and units of business trust has increased from 15 per cent to 20 per cent and they will come in effect from July 23, 2024.
- 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.)
