Dear Readers,
We are excited to share our 143rd E-Newsletter “Weekly Taxation Newsletter” dated 16th April, 2024, encompassing the period from 09th April 2024 to 15th April 2024 with you. This newsletter is a compilation of the latest news related to tax, such as due dates under the IT Act 1961 and updates under the GST, 2017. It also provides insightful information on income tax department’s interim action plan for FY25, the new versus old income tax regime for TDS on salary, the necessity of filing ITR even if advance tax has been paid, and the I-T department’s initiative to tap 1.52 crore individuals for income tax return filing.
In addition, it features important circulars and notifications related to GST, excise/custom updates, significant case-laws in income tax and GST, international taxation updates regarding the India-Mauritius tax treaty, a discussion on UAE corporate tax, and a knowledge bucket for NRIs. The newsletter concludes with various forms made available for filing, an important disclaimer, email contact information, and a gratitude note.
Stay updated, stay connected!
Best regards.
- Stay updated, Stay connected
- Due Dates under IT Act 1961
| Sl. | Compliance Particulars | Due Dates |
| 1 | Quarterly statement in respect of foreign remittances (to be furnished by authorized dealers) in Form No. 15CC for quarter ending March, 2024 | 15.04.2024 |
| 2 | Due date for furnishing statement in Form no. 3BB by a stock exchange in respect of transactions in which client codes been modified after registering in the system for the month of March, 2024 | 15.04.2024 |
- Under the GST, 2017
A. 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 | 20.04.2024 |
B. Filing of GSTR –3B / GSTR 3B QRMP
a) Taxpayers having aggregate turnover > Rs. 5 Cr. in preceding FY
| Tax period | Due Date | Particulars |
| Mar., 2023 | 20th April, 2024 | Due Date for filling GSTR – 3B return for the month of Mar, 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 | |
| Mar., 2023 | 22nd April, 2024 | Due Date for filling GSTR – 3B return for the month of Mar., 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 | |
| Mar., 2023 | 24th April, 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 | |||
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 |
- Weekly Departmental Updates: Income Tax
1. Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals
The Income Tax department has released an interim action plan for the fiscal year 2024-25, which will focus on areas such as identifying cases of TDS short-payment, expediting appeals processing, and others.
The plan sets deadlines for refund approvals, asset release, and compounding proposals. Moreover, the identification of cases is also mentioned, where seized assets are due for release and release the same by June 30, 2024.
The plan also stipulated that at least 150 appeals must be resolved by June 30 and that compounding proposals that were pending as of March 31, 2024, must be finalised.
Explaining the process, AKM Global’s Tax Partner Sandeep Sehgal noted that the Central Board of Direct Taxes’ (CBDT) is trying to enhance tax administration efficiency through this plan. Immediate steps include addressing grievances through e-Nivaran and CPGRAM platforms.
“Taxpayers are now required to file applications before the assessing officer for pending refunds pertaining to their respective assessments,” Sehgal told news agency PTI.
The plan also aims to speed up Nil/Lower TDS or TCS Certificates applications resolution within a month of receipt from April 1, 2024, benefiting taxpayers’ cash flows. Audit objection resolutions are prioritized, targeting settlement of major and minor objections by June 30, 2024.
“The detailed nature of the guidelines highlights the meticulous planning undertaken by the government across various fronts. Ultimately, these directives aim to maintain business as usual, ensuring adherence to tax collection targets, thereby bolstering fiscal management and mitigating the need for additional borrowing. In essence, the objective is to safeguard tax collection,” Srivatsan said.
- To read more Click Here
2. New versus Old regime: Does opting for the old income tax regime for TDS on salary make ITR processing, refunds easier?
New versus old tax regime: At the beginning of each financial year, salaried individuals must select an income tax regime for TDS (tax deducted at source) on their salary. They need to tell their employers whether they prefer the old or new tax regime, as their employer will deduct taxes from their salary according to the chosen regime’s income tax brackets. But does opting for the old tax regime lead to smoother processing of ITR (Income Tax Return) and income tax refund claims?
As per an ET report, if someone chooses the old tax regime for TDS on their salary and claims any allowed deductions, these deductions will appear on Form 16 if they provide the necessary proofs to their employer on time. However, if they choose the new tax regime, only standard deductions and Sec. 80CCD (2) deductions (if claimed & eligible) will be shown on Form 16.
However, some individuals may initially choose the new tax regime for TDS on salary but later decide to file their ITR under the old tax regime, as it may seem more advantageous at the time. In such cases, they’ll need to calculate their deductions themselves to reduce their tax burden. Moreover, the income tax department is more likely to ask for proof and documents for deductions claimed when they’re not reflected in Form 16 from the employer.
This issue doesn’t occur if someone switches from the old tax regime (selected at the start of the financial year for TDS on salary) to the new tax regime when filing their ITR. This is because the two main deductions allowed under the new tax regime are also permitted under the old tax regime. Hence, these deductions would still appear in Form 16 prepared by the employer under the old tax regime.
Choosing tax regimes for TDS on salary: What should taxpayers do?
Raote recommends that taxpayers play it safe by selecting the old tax regime for TDS on salary, claim all eligible exemptions and deductions, and switch to the new tax regime during ITR filing if it proves more advantageous. “This will result in fewer questions from the tax department. However, this will double the administrative work for the employee in terms of submitting proofs to the employer.”
That’s because under the old tax regime, the employee needs to submit proofs to the employer, but those documents might not be necessary when filing ITR under the new tax regime.
Certainly, the ideal scenario would be if the tax regime chosen for TDS from salary at the beginning of the financial year aligns with the regime under which the ITR is expected to be filed. To read more Click Here
3. Advance Tax Paid, Do You Still Need To File ITR? Check Details Here
ITR or Income Tax Return is a form you submit to the Income Tax Department that details your income earned and taxes applicable for a specific financial year (April 1st to March 31st of the following year).
Filing your ITR is important for a couple of reasons;
- Tracks your tax liability: It helps the government determine the income tax you owe based on your income sources and deductions claimed.
- Claim tax refunds: If you’ve paid more tax than you owe, filing an ITR allows you to claim a refund from the Income Tax Department.
ITR and advance tax are integral components of the taxation system in India, each serving distinct roles. ITR is a formal declaration submitted by individuals and entities to the Income Tax Department, detailing their income earned during a financial year.
ITR filing is obligatory for those whose total income exceeds the specified threshold, ensuring compliance with tax laws and facilitating accurate reporting of financial affairs.
Do you need to file an ITR even when you have paid all the taxes in advance?
According to the IT department, filing of income tax returns for individuals is mandatory for every person whose income (before considering certain exemptions and deductions) exceeds the maximum exemption limit. With effect from Assessment Year 2020-21, it is mandatory for every person, who is not required to furnish a return of income under any other provision of section 139(1), to file a return of income if during the previous year he/she:
- Has deposited an amount (or aggregate of amount) over Rs. 1 crore in one or more current accounts maintained with a bank or a cooperative bank.
- Has incurred aggregate expenditure over Rs. 2 lakh for himself or any other person for travel to a foreign country.
- Has incurred aggregate expenditure over Rs. 1 lakh towards payment of electricity bill.
- Fulfils such other conditions as may be prescribed.
There are a few categories of taxpayers exempted from filing ITR even if their income exceeds the basic exemption limit.
Senior Citizens with Pension Income:
- If you’re a resident senior citizen above 75 years old with only pension and interest income from the same bank where you receive your pension.
- The bank must be a specified bank authorised by the Central Board of Direct Taxes (CBDT).
- In this case, you can submit a declaration to the bank, and they’ll deduct TDS (Tax Deducted at Source) after considering deductions and rebates.
- Individuals with income below the exemption limit:
- To read more Click Here
4. I-T department to tap 1.52 crore individuals for income tax return filing. Here’s why
The Income Tax Department will kickstart a drive against the individuals and entities who are required to file their income tax returns (ITR) but have not done.
The I-T department has identified 1.52 crore such individuals who have the income or have had tax deducted at source (TDS) but did not file their returns, Economic Times reported.
An official told the website that in financial year 2022-23, there were about 8.9 crore taxpayers while the returns filed were 7.4 crore. The number of returns includes the revised returns, the official added.
As a result, there were possibly 1.97 crore individuals who did not file ITR despite have incurred tax deducted at source. Out of those who did not file their returns, 1.93 crore were in the individual category, 28,000 in the Hindu undivided family and 1.21 lakh were firms while the remaining were in different other categories.
According to the official, there were instances were the bank transactions linked to the PAN were very high, thereby necessitating the filing of ITR, the report added.
- To read more Click Here
5. I-T department sets April 30 deadline for approving refunds: Report
If you have not received your income tax refund so far, there is good news for you. The Income Tax (I-T) Department has set April 30 as the deadline for approving pending refunds, reported Business Line.
The department has prepared an interim action plan for tax refunds in this fiscal and set a timeline for various actions related to taxpayers, sources said.
“Approval of pending refunds has been placed under immediate action. The aim is to approve all pending refunds by April 30, 2024, which were withheld under section 241A and where scrutiny assessments have been completed and necessary orders have been passed,” reported Businessline quoting an official.
Withholding refund
Section 241A of Income Tax Act allows the assessing officer to withhold refund in case “such grant is likely to adversely affect the revenue.”
Last month, the department said refunds amount to over ₹3.36-lakh crore issued in the FY24 till March 17 as compared to refunds of over ₹2.98-lakh crore issued in corresponding period of FY23. There are still some complaints from taxpayers with regards to the pending refund of not just previous fiscal but of earlier years as well.
Another key deadline has been set for cases getting time barred on March 31, 2025. The concept of time barred can be found under section 148 of the Income Tax Act. .
- To read more Click Here
- Important Circulars and Notifications:
| Sl. | Particulars of the Notification(s) | File No. / Circular No. | Notification Link(s) |
| 1 | NA | ||
Weekly Departmental updates:
- GST Updates
1. Next government must urgently fix ‘unnecessarily complex’, counter-productive GST: 13th Finance Commission chair
Vijay Kelkar attributes frauds in indirect tax regime to high GST rates; moots switch to single 12% rate like most other countries; says GST Council secretariat must be independent, not attached to Union government
A key architect of India’s tax reforms and the chairman of the Thirteenth Finance Commission Vijay Kelkar has called upon the country’s next government to undertake urgent reforms in the “unnecessarily complex” Goods and Services Tax (GST) regime, such as switching to a single tax rate of 12% and sharing revenues with local governments and municipal corporations.
Mr. Kelkar has also mooted the creation of an independent secretariat for the GST Council, the apex-decision making body for the indirect tax rolled out in July 2017, as the current arrangement of the Union Government driving the secretariat may be considered problematic by States. Read more at: Click Here
2. GSTR-1 deadline has been extended today as recommended by GSTN due to difficulties in filing
Due to difficulties in filing GSTR-1 online, the Goods and Services Tax Network (GSTN) recommended on Thursday that the due date of filing GSTR-1 be extended by one day to April 12, 2024, from April 11, 2024. However, at the time of publishing this article at 2 pm, there was no notification from the Central Board of Indirect Taxes and Customs (CBIC) regarding an extension of the deadline. Having said that, the GSTN portal after logging in shows that the revised deadline as April 12, 2024.
“GSTN has noticed that taxpayers are facing difficulties in filing GSTR-1 intermittently since yesterday due to technical issues leading to slow response on the portal. GSTN has accordingly recommended to CBIC that the due date for filing of GSTR-1 for the monthly taxpayers be extended by a day i.e. till 12/4/24,” said GSTN on their website as of April 12, 2024, as well as on X (formerly Twitter)
The deadline for filing GSTR-1 may have been extended?
GST experts say that the deadline has not yet been extended officially as no circular has been issued. A circular from CBIC is awaited for the same. As mentioned above, the GSTN portal reflects the revised deadline as April 12, 2024, for filing GSTR-1.
What will happen if GSTR-1 is not filed?
The due date for filing GSTR-1 is the 11th day of the succeeding month for which the form is being filed for those taxpayers who file it monthly. For those taxpayers who file GSTR-1 quarterly, the due date is the 13th day of the month succeeding the end of every quarter.
- (Read more at: Click Here)
3. Explained: Here’s what you should know about GST evasion and DGGI
What’s the role of the DGGI?
The charter of DGGI focuses on the collection, collation and dissemination of intelligence on all matters relating to GST, Central Excise (CE) & Service Tax (ST) which have all India repercussions, to unearth modus operandi and alert field formations, alert other law enforcement agencies about the trends of evasion and investigate offences involving evasion of GST, CE or ST which have multi-commissionerate ramifications, and also suggest policy changes.
How widespread is the presence of DGGI?
The DGGI has its headquarters in New Delhi, with four sub-national units (North at Delhi, South at Bengaluru, East at Kolkata, and West at Mumbai) headed by Director-Generals, 26 zonal units, and 40 regional units. It is a relatively slim organisation with a working strength of about 1500.
How does DGGI operate?
The process of collecting intelligence is complex. It involves the analysis of data using the latest data analytical tools, of revenue, of the performance of sectors or industries, of specific companies in those sectors or industries, and of differences or mismatches in submissions made by a company to different statutory authorities—all of these are from various open sources. There is also close interaction with the state GST enforcement wings for the sharing of intelligence and modus operandi. It also involves the collection of intelligence/information from individuals who could be disgruntled employees or any public-spirited individual.
- (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 Reset and Re-filing of GSTR-3B of some taxpayers | GSTN 629 | Click Here |
| 2 | Advisory: Auto-populate the HSN-wise summary from e-Invoices into Table 12 of GSTR-1 | GSTN 630 | Click Here |
| 3 | Extension of GSTR-1 due date to 12th April 2024 | GSTN 631 | Click Here |
| 4 | Extension of Due date of GSTR-1 for the period March 24 | GSTN 632 | Click Here |
Custom / Excise Updates
| Links | Notification Particulars |
| Click here | Govt cuts import duty on turkeys; exempts extra long staple cotton from tax |
| Click here | Import Tax Cut In Government’s New EV Policy, Tesla’s India Plans Boosted |
- Important Case-laws
- Income Tax
1. Dr. Aswath N. Rao (Karnataka High Court
Can the expenditure incurred for purchase of second hand medical equipment for use as spare parts for existing equipment be claimed as revenue expenditure?
Since the second hand machinery purchased by the assessee is for use as spare parts for the existing old machinery, the same had to be allowed as revenue expenditure. Since the entire sale consideration was paid on 31st March of the relevant previous year and the machinery was also dispatched by the vendor from USA, the sale transaction was complete on that date. The title to the goods had passed on to him on that date and he became the owner of the machinery even though the goods reached India only in August next year.
Therefore, the assessee was eligible to claim deduction of expenditure in the relevant previous year ended 31st March.
- Important Case-laws
- GST Cases:
1. AAR: OPD care for substance abuse not GST exempt
The GST-Authority for Advance Rulings (AAR), Rajasthan, has held that treatment of outpatients suffering from substance abuse disorders does not fall within the ambit of ‘healthcare services’ that are exempt from GST.
Sanjeevani Psychiatric Clinic, an allopathy facility, provides counselling, medical examination and prescription of medicines by psychiatrists. It submitted to the AAR that in the treatment of substance abuse disorders, examination of a patient by a doctor is pivotal. Other elements like counselling and dispensing of medicine are an integral part of the treatment, it said. The supply of medicines constitutes ‘controlled drugs’ and is given by the clinic itself in exact dosage as per the psychiatrist’s prescription, said the clinic. It said a patient does not have the choice to buy it from a medical store and, therefore, the medicines cannot be treated as an independent supply.
The AAR bench observed that the clinic is engaged in the supply of services (medical examination and counselling) as well as supply of goods (medicines). It noted that healthcare services are exempt from GST, and that the supply of medicines to inpatients by hospitals may be a part of the composite supply of healthcare and may not be separately taxable. However, in this case, medicines are provided by the clinic to outpatients and are not a tax-exempt composite supply, the bench said. Source: Click Here
- International Taxation Corner (ITC)
1. I-T department issues clarification regarding India-Mauritius tax treaty
The Income Tax department on Friday issued clarifications regarding the recent amendments to the India Mauritius Double Taxation Avoidance Agreement (DTAA) that have sparked concerns among stakeholders.
The department said that the Protocol pertaining to the amendment is yet to be ratified and notified under Section 90 of the Income-tax Act, 1961. Until this Protocol comes into force, any queries or concerns regarding the amendments will be addressed as and when necessary, said the department.
“Some concerns have been raised on the India Mauritius DTAA amended recently. In this context, it is clarified that the concerns /queries are premature at the moment since the Protocol is yet to be ratified and notified u/s 90 of the Income-tax Act, 1961. As and when the Protocol comes into force, queries, if any, will be addressed, wherever necessary,” it said.
India-Mauritius tax treaty
India and Mauritius on March 7, 2024, signed an amendment to the DTAA and included a principal purpose test (PPT) in the pact which aims to curtail tax avoidance by ensuring that treaty benefits are only granted for transactions with a bona fide purpose.
Historically, Mauritius has been a preferred jurisdiction for engaging in investments in India due to the non-taxability of capital gains from the sale of shares in Indian companies until 2016.
In 2016, India and Mauritius signed a revised tax agreement, which gave India the right to tax capital gains in India on transactions in shares routed through the island nation beginning April 1, 2017. However, investments made before April 2017 were grandfathered.
- Source / Read more at: Click Here
2. UAE corporate tax: Pros and cons of grouping companies
The UAE’s Federal Tax Authority recently issued guidelines on the grouping of companies for corporate tax.
With two months until the end of the first corporate tax year, it is worth considering the potential benefits and issues that might arise from group structures.
A decision to join two or more companies together should not be made lightly. The process of bonding can be straightforward but the continuing management of its implications and the difficulty of extracting any elements from such a marriage can be stressful.
Consequently, it is not unusual to unbundle the multiple facets of an organisation.
Different sales streams, by product or market, might sit in their own entities.
Group functions such as finance and treasury may see their effectiveness improved by the distance such structuring creates.
There are elements that have their own intrinsic value, such as trademarks and patents.
As these may be divested or augmented, it is easier to complete due diligence, on-board or sell them if they are not glued into a greater corporate identity.
Finally, there might be a holding company. In larger organisations, their role is often not dissimilar to family offices. They manage the overall wealth of the group and focus on continuity over operational entities’ shorter term targets.
The key benefits are having to file only a single return within which intragroup trade sales are cancelled out. This is because the group sits as both the buyer and the seller. This works best where each separate entity represents a different stage of the same sales chain.
- Source / Read more at: Click Here
- Knowledge Bucket for NRI’s
- The salary that is received in India or the salary for service rendered in India is taxable for non-resident Indians.
- Any rental income from a property located in India is also taxable for NRIs.
- Interest on NRO (non-resident ordinary) accounts only is taxable for NRIs. NRE (non-resident external) and FCNR (foreign currency non-resident) accounts are tax-free.
- Do you know ??
- New Form-1 (Aircraft Leasing business), Form -1 {Dividend exempt u/s 10(34B)}, Form-1 (Ship Leasing Business), Form-10IEA, Form-10IFA & Form-3AF are released. Please refer Notification 65/2022 for Form 1 (Aircraft Leasing Business), Notification 52/2023 for Form 1 {Dividend exempt u/s 10(34B)}, Notification 57/2023 for Form 1 (Ship Leasing Business)Notification 43/2023 for Form 10-IEA, Notification 83/2023 for Form 10-IFA & Notification 54/2023 for Form 3AF.
- Income Tax Return Form of ITR-1, 2 and 4 are enabled to file through Online mode with prefilled data at the portal.
- Excel Utilities of ITR-1, ITR-2 and ITR-4 for AY 2024-25 are available for filing.
- Offline Utilities for ITR-1, ITR-2, ITR-4 and ITR 6 for AY 2024-25 are available for filing.
- 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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| 16.04.2024 – Vol. 143* |
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