We are delighted to share our 138th E-Newsletter “Weekly Taxation Newsletter” dated 05th March, 2024 from 27th Feb. 2024 to 05th Mar., 2024 with you. This E – Newsletter is a weekly reference / compilation of interesting and latest news related to tax including upcoming Timelines / Due Dates, Notifications / Press Information, Case Laws, International Taxation etc.
- Stay updated, Stay connected
- Due Dates under IT Act 1961
| Sl. | Compliance Particulars | Due Dates |
| 1 | Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA in the month of January, 2024 | 01.03.2024 |
| 2 | Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IB in the month of January, 2024 | 01.03.2024 |
| 3 | Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194M in the month of January, 2024 | 01.03.2024 |
| 4 | Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194S (by specified person) in the month of January, 2024 | 01.03.2024 |
| 5 | Due date for deposit of Tax deducted/collected for the month of February, 2024. However, all sum deducted/collected by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan | 07.03.2024 |
| 6 | Fourth instalment of advance tax for the assessment year 2024-25 | 15.03.2024 |
| 7 | Due date for payment of whole amount of advance tax in respect of assessment year 2024-25 for assessee covered under presumptive scheme of section 44AD / 44ADA | 15.03.2024 |
| 8 | Due date for furnishing of Form 24G by an office of the Government where TDS/TCS for the month of February, 2024 has been paid without the production of a Challan | 15.03.2024 |
- Under the GST, 2017
A. Filing Form GSTR-1:
| Tax period | Due Date | Remarks |
| Monthly return (Feb., 2023) | 11.03.2024 | 1. GST Filing of returns by registered person with aggregate turnover exceeding INR 5 Crores during preceding year. 2. Registered person, with aggregate turnover of less then INR 5 Crores during preceeding year, opted for monthly filing of return under QRMP. |
B. Non Resident Tax Payers, ISD, TDS & TCS Taxpayers
| Form No. | Compliance Particulars | Timeline | Due Date |
| GSTR -6 | Every Input Service Distributor (ISD) | 13th of succeeding month | 13.03.2024 |
| GSTR -7 | Return for Tax Deducted at source to be filed by Tax Deductor | 10th of succeeding month | 10.03.2024 |
| GSTR -8 | E-Commerce operator registered under GST liable to TCS | 10th of succeeding month | 10.03.2024 |
C. GSTR – 1 QRMP monthly / Quarterly return
| Form No. | Compliance Particulars | Timeline | Due Date |
| Details of outward supply-IFF & Summary of outward supplies by taxpayers who have opted for the QRMP scheme. | GST QRMP monthly return due date for the month of April, 2022 (IFF). Applicable for taxpayers with Annual aggregate turnover up to Rs. 1.50 Crore.Summary of outward supplies by taxpayers who have opted for the QRMP scheme. | 13th of succeeding month – Monthly Quarterly Return | 13.03.2024 |
- Weekly Departmental Updates: Income Tax
1. Questions to ask before investing in tax-saving schemes
The looming deadline to invest in tax-saving instruments can cause several investors to make desperate last-minute tax-saving attempts. This can, unfortunately, cause poor judgement for many leading to missed appropriate investment opportunities which can help to grow their wealth along with tax savings. It can also create unnecessary strain on your wallet to gather the required funds (Rs.1.5 lakhs) at the last minute for availing of the tax benefit under section 80 C of the Income-Tax Act.
This last-minute make-shift approach may not serve the purpose of making your investments work for you.
Questions to ask yourself before you finalize on a tax saving option:
1. What are the Different Tax Saving Avenues?
There are several instruments u/s 80C of the Income Tax Act that can help in tax-saving. From traditional fixed income instruments such as PPF, NSC, Post Office Time Deposits, NABARD Bonds to market-linked options such as ELSS or ULIP. While traditional instruments have longer lock-in periods, market-linked instruments such as ELSS has a lower lock-in and potential for market-linked returns.
As you see in the table above, ELSS combines the flexibility of a lower lock-in and the potential for long term wealth creation.
2. How does an ELSS help you with your tax-saving and wealth-creation goals?
ELSS or “Equity Linked Saving Scheme” as the name suggests, are mutual funds that invest a minimum 80% of the portfolio in equity and equity-linked instruments. Like other options u/s 80C of the income tax, investments done in ELSS Mutual Funds offer tax exemption up to Rs.1,50,000 from your taxable income. Therefore, you can save up to Rs 46,800 in a year by investing in ELSS Funds provided you are in the highest tax bracket. Let’s see how you can save this money with the illustration below:
Thus, with an ELSS you not only save tax but also avail potential for wealth creation in the long-term due to the equity component.
- To read more Click Here
2. What are the Income Tax Slabs for 2024-25? Know details for old and new tax regime
Income Tax Slabs 2024-25: The Interim Budget for 2024 presented by Finance Minister Nirmala Sitharaman recently did not introduce any alterations to the income tax slabs or rates. If you’re a common individual or salaried taxpayer curious about the income tax structure for the financial year 2024-25 (Assessment year 2025-26), we’ve got you covered.
It’s important to note that while no adjustments were made to the income tax slabs in both the old and new tax regimes, this could change when the new government unveils the full-year Budget 2024 after the Lok Sabha polls in 2024.
What are the Income Tax Slabs for the year 2024-2025 following the Interim Budget 2024?
As highlighted earlier, the Finance Minister proposed to maintain the existing tax rates in the interim budget for the financial year 2024-25. Therefore, unless there are any alterations made in the final budget following the general elections, the personal income-tax rates for the financial year 2024-25 will remain unchanged as follows:
Income Tax Slabs 2024-2025 For Old/Regular Tax Regime.
| Income range (in INR) | Rates |
| Up to 250,000* | NIL |
| 250,001 to 500,000 | 5% |
| 500,001 to 1,000,000 | 20% |
| Above 1,000,000 | 30% |
These income tax slabs and rates apply to individuals (residents below 60 years of age, NR, and NOR) for the financial year 2024-25.
Resident individual taxpayers with a total income not exceeding Rs 500,000 will qualify for a tax rebate of Rs 12,500 or the actual tax payable, whichever is lower.
Income Tax Slabs for the Financial Year 2024-2025 in the New Income Tax Regime
The income tax rates applicable under the new income tax regime, also known as the Concessional Tax Regime, for the financial year 2024-25 are as follows:
| Income range (in INR) | Rates |
| Up to 300,000 | NIL |
| 300,001 to 600,000 | 5% |
| 600,001 to 900,000 | 10% |
| 900,001 to 1200,000 | 15% |
| 1,200,001 to 1,500,000 | 20% |
| Above 1,500,000 | 30% |
- To read more Click Here
3. Gujarat : Sahajanand Technologies Cash Heist In Surat Raises Eyebrows Of Income Tax Department
A sensational robbery involving Rs 8 crore cash belonging to Sahajanand Technologies Private Limited (STPL) has taken a curious turn, with the Surat Income Tax department now scrutinizing the incident. The reason? The employees of STPL, a leading diamond machine manufacturing company, were transporting the cash to a safe deposit vault when they were allegedly looted by a man posing as an “IT officer” near Katargam.
This incident has shed light on the widespread presence of private safe deposit vaults in Surat, particularly in areas like Katargam, Varachha, and Mahidharpura. According to IT sources, these vaults are increasingly being used by individuals and businesses to store cash and valuables, potentially as a way to evade income tax scrutiny.
While the police continue their investigation into the robbery, the IT department has initiated a probe into the cash deposits made in these private vaults. This probe stems from suspicion that individuals and companies, especially large diamond businesses, are using these vaults to hide “benami” (undisclosed) cash, documents, and valuables to escape the radar of tax authorities.
The sensational robbery and subsequent IT department probe have brought the issue of private safe deposit vaults and their potential misuse into sharp focus. While the police investigation into the robbery continues, the IT department’s scrutiny of these vaults aims to uncover any potential tax evasion practices that might be facilitated by their use. This incident serves as a stark reminder of the importance of transparency and adherence to financial regulations in the diamond industry and beyond.
- To read more Click Here
4. NMMC offers spl amnesty scheme in property tax penalty till March 31
In view of achieving its property tax collection target for the fiscal year 2023-24, Navi Mumbai Municipal Corporation (NMMC) has launched a special amnesty scheme for the next 30 days while allowing relief to the taxpayers in penalty for delayed payment.
The scheme has been implemented from Mar 1, and will continue till Mar 31. This will certainly help the civic body to effectively recover the arrears of property tax in NMMC jurisdiction, said civic officials. NMMC has decided to waive off 75% of tax penalty for those who are able to pay between Mar 1 and 20. Besides, a 50% waiver in penalty is allowed from March 21 to 31. According to NMMC sources, this scheme is not mandatory for the defaulters of tax payment. Participation of property holders in the amnesty scheme will remain voluntary, said officials.
An official said, “75% penalty will be waived off on payment of arrear tax amount if it is paid between March 1 and 20. This means one has to pay just a 25% penalty on the outstanding tax amount. Those making payment between Mar 21 and 31 will get a benefit of 50% discount in penalty of pending tax amount which means the taxpayer will have to pay the principal amount of tax with a 50% penalty.” Under the special amnesty scheme, there will be no relief in the arrears of original property tax amount due as the entire outstanding amount has to be paid at once to get the benefits. Partially paid amounts will not benefit from this scheme, said officials.
Online application is required for the amnesty scheme on the website http://www.nmmc.gov.in or the mobile app nmme e-connect. Debit card, credit card, internet banking, NEFT, RTGS modes of payment are available for online payment. Facility of payment of property tax can be done at NMMC headquarters besides all divisional offices and all pay centres by cash /cheque/ money order. As on date, NMMC tax department has collected over Rs 530 crore property tax since Apr 2023, against the targeted figure of Rs 801 crore as the current fiscal budget provision. Concession will not be given in penalty and interest after the property tax is paid beyond March 31.
- To read more Click Here
- Important Circulars and Notifications:
| Sl. | Particulars of the Notification(s) | File No. / Circular No. | Notification Link(s) |
| 1 | Processing of returns of income validly filed electronically with refund claims under section 143(1) of the Income-tax Act, 1961 beyond the prescribed time limits in non-scrutiny cases | Press Release | Click Here |
Weekly Departmental updates:
- GST Updates
1. DMK may include abolition of GST in its manifesto
Dravida Munnetra Kazhagam (DMK) spokesperson and MP T.K.S. Elangovan on Friday hinted that abolition of GST might figure prominently in the party’s manifesto for the Lok Sabha election.
Addressing the media after holding a meeting with party office-bearers and individuals to invite suggestions for preparing the Lok Sabha election manifesto from here on Friday, Mr. Elangovan said after the introduction of GST, the Union government had been allocating more funds to States ruled by the BJP which affected the prospects of “developing States”. Hence, scrapping GST and reverting to the old system of taxation by the State governments would be preferred, he added. Read more at: Click Here
2. Nirmala Sitharaman to inaugurate conference of GST enforcement chiefs on March 4
Finance Minister Nirmala Sitharaman will inaugurate on Monday a conference of enforcement chiefs of all state and central GST officers to tackle tax evasion.
In the conference, Goods and Services Tax (GST) formations will deliberate on combating GST evasion, including examining current challenges and delving into successful methods adopted by central and state tax enforcement officers.
It would also strategise on effective methods to combat fake invoicing, sharing best practices, fostering synergy, and leveraging technology and data.
Union Minister for Finance and Corporate Affairs Nirmala Sitharaman will inaugurate the one-day conference and also deliver the keynote address on March 4, a finance ministry statement said.
Embracing the spirit of cooperative federalism as exemplified by GST, this conference serves as a valuable platform for both Centre and state GST Enforcement authorities to share best practices, foster mutual learning, and collectively strengthen the GST administration, it added.
- (Read more at: Click Here)
3. Bihar traders offered ‘one-time settlement’ for pre-GST era tax liabilities
The NDA government in Bihar on Thursday came out with a ‘one-time settlement’ initiative for the benefit of traders with tax liabilities dating back to the pre-GST era.
The Bihar Tax Disputes Settlement Bill, 2024 was tabled in the state assembly by Deputy Chief Minister Samrat Chaudhary, who also holds the finance portfolio.
The Bill was passed in the assembly through voice vote, and, according to Choudhary, once notified, “it will bring great relief to traders with pre-GST tax liabilities”.
“The Bill provides traders with an opportunity to settle their pre-GST tax liabilities through the one-time settlement scheme. It would require traders to pay 10 per cent of the penalty and the remaining 90 per cent will be waived. In addition, traders will have to pay 35 per cent of the disputed tax amount to get a waiver of the remaining 65 per cent,” said Choudhary.
He also announced that the government has “accepted the demand of petrol pump owners that they be exempted from filing VAT returns”.
The announcements came on the penultimate day of the budget session, which commenced a fortnight ago when Chief Minister Nitish Kumar won a trust vote after the formation of a new government in alliance with the BJP.
The assembly also passed amendments to the Bihar State Madarsa Education Board Act, Bihar State Minorities Commission Act, and Bihar State Sanskrit Education Act through voice vote.
- (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 | Subject: Instances of Delay in registration reported by some Taxpayers despite successful Aadhar Authentication in accordance with Rule 8 and 9 CGST, Rules, 2017-reg | GSTN 625 | Click Here |
Custom / Excise Updates
| Links | Notification Particulars |
| Click Here | Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg |
| Click Here | Seeks to amend notification No. 14/2019-Customs(ADD) dated 25.03.2019, in order to change the name of the producer from ‘M/s Mitsui Phenols Singapore Pte. Ltd’ to ‘M/s INEOS Phenol Singapore Pte. Ltd’ pursuant to DGTR recommendation |
| Click Here | Seeks to further amend No. 04/2022-Central Excise, dated the 30th June, 2022, to reduce the Special Additional Excise Duty on export of Diesel. |
- Important Case-laws
- Income Tax
1. HC sets aside CIC’s order to CBDT for tax info on Ayodhya temple trust
The Delhi High Court has set aside an order of the Central Information Commission (CIC) directing the Central Board of Direct Taxes (CBDT) to provide information under the RTI Act on tax exemptions/ deductions sought by the Shri Ram Janmabhoomi Teerth Kshetra Trust, which oversees the construction and management of the Ayodhya Ram temple.
In its order on February 28, a single judge bench of Justice Subramonium Prasad said it is open for the applicant, Kailash Chandra Moondra, to approach the appropriate authority under the Income Tax Act to obtain information as sought in his RTI application.
The HC was hearing a plea filed by the CBDT’s Central Public Information Officer (CPIO) seeking quashing of a November 30, 2022 order of the CIC directing the CPIO to revisit certain points made in Moondra’s application and provide information within 15 days.
In his RTI application, Moondra had asked the CBDT to provide a copy of the “complete application with all annexures” filed by the Trust to get “exemptions or deductions” under the relevant provisions of the Income Tax Act for “its donations”. He also sought a copy of the trust deed filed with the application, besides the CBDT’s “internal reports, objects and notes available on the official file” of the Trust’s application.
It further relied on a January 22 order of the HC setting aside a CIC order directing the Income Tax Department to disclose information under RTI Act on tax exemption granted to PM-CARES Fund. The HC had held that “CIC does not have the jurisdiction to direct furnishing of information, provided for in Section 138 (disclosure of information regarding assesses) of the IT Act”.
“In view of the above, the (CBDT’s) writ petition is allowed. The impugned order dated 30.11.2022 passed by the Ld. CIC is set aside. Pending applications, if any, also disposed of,” said the February 28 order by Justice Prasad.
- Source: Click Here
2. Bombay HC grants relief to Godrej Industries in a Dispute against the Income Tax department
In a relief to Godrej Industries, the Bombay High Court has held the show cause notice issued by the revenue department against the group ‘bad in law’ and has clarified that it was barred by the limitation.
In this case, Godrej Industries had challenged the show cause notice issued by the income tax department on May 22, 2022, with the arguments that the notice was issued during the pendency of reassessment proceedings under an earlier notice and, therefore, is illegal.
Representing the company, the senior counsel pointed out that, according to the original Section 149(1)(b) of the Income Tax Act, a Section 148 notice must be issued within six years of the end of the assessment year in question, making the deadline for the 2014-15 assessment year March 2021.
The Bombay High Court has ruled that the show cause notice issued by the revenue department against Godrej Industries was illegal due to a limitation. The company challenged the notice, which was issued during reassessment proceedings under an earlier notice. The court clarified that the time limit to issue a notice under Section 148 of the Income Tax Act 1961 was six years from the end of the relevant assessment year, which expired on March 2021 for the assessment year 2014-15.
Nonetheless, the court concluded that the notice’s legality hinges on the laws in effect when the notice is issued. Therefore, considering the enactment of the Finance Act, 2021 by July 31, 2022, no notice under Section 148 for the assessment year 2014-15 should have been issued after April 1, 2021, according to the initial clause of Section 149 of the Act.
- Source: Click Here
- Important Case-laws
- GST Cases:
1. Ice cream topping crackle likely to attract 18 per cent GST on AAR ruling
The crackle sold to companies for use as toppings on ice creams may now be subject to a higher goods and services tax (GST) rate of 18 per cent, and not 12 per cent.
The Authority for Advance Rulings (AAR) has held that crackle sold to ice cream companies should not be categorised as sugar boiled confectionery but rather as an industrial input.
Although the AAR did not specify the applicable GST rate, experts anticipate that it will indeed be 18 per cent, contrary to the applicant’s request for a 12 per cent rate. This decision pertains to a product commonly known as NBS crackle, composed primarily of sugar but also containing ingredients like cashew nuts, butter and glucose.
The applicant’s argument was based on the classification of the topping as sugar boiled confectionery, which is subject to a 12 per cent GST rate. However, the court held that the product in question is not intended for direct consumption by end users. Instead, it is specifically sold to ice cream manufacturers as an essential industrial input.
- Source: Click Here
- International Taxation Corner (ITC)
1. Brazil’s finance minister proposes global tax on the super-rich at G20 meeting in Sao Paulo
Brazil’s finance minister told his peers Thursday at a G20 meeting in Sao Paulo that countries should implement a global tax on the super-rich in an effort to tackle rampant tax evasion.
Fernando Haddad said tax evasion can be resolved through international cooperation so that “these few individuals make their contribution to our societies and to the planet’s sustainable development.” He added that Brazil is pushing for a declaration on international taxation by G20 members that he hopes would be ready in July. But in a press conference at the end of the meeting, he recognized the path would be far from smooth.
“There will be a lot of debate about this, which is absolutely natural, especially because not every country feels the same way about this problem that was brought to the G20 by Brazil,” he said.
According to a 2023 study by advocacy group Tax Justice Network, countries around the world could lose up to $4.8 trillion in tax revenue over the next decade due to tax havens. And a report earlier this year by the EU Tax Observatory cited by Haddad, found that billionaires worldwide have effective tax rates equivalent of between 0% and 0.5% of their wealth.
But with inequalities soaring, more are calling for higher taxes on the wealthy – including U.S. President Joe Biden, who has pushed for a billionaire minimum income tax although the likelihood of Congress passing that proposal is minimal.
In a sign of growing global consensus on the matter, the United Nations General Assembly adopted a resolution late last year backing stronger international tax cooperation to “make it fully inclusive and more effective.”
“The difficulty is no longer putting the issue on the table, the data is there. The difficulty is arriving at a common document,” said Carla Beni, an economist from the Getulio Vargas Foundation, a university and think tank.
- Source / Read more at: Click Here
2. Corporate tax UAE: Registration date, fines, exemptions and what you need to know
The UAE has announced new corporate tax registration deadlines for this year for eligible businesses. Under a new decision that takes effect from March 1, businesses must register by a certain date depending on the month of their licence being issued, or face a fine of Dh10,000 ($2,722). The National takes a closer look at what businesses should know.
New deadlines
Under the decision announced by the Federal Tax Authority (FTA), resident companies incorporated or established in the UAE before March 1 must stick to specific deadlines this year to register for corporate tax.
For example, if a licence was issued in January or February, regardless of the year, the business must submit its corporate tax registration application no later than May 31 to avoid breaking the law.
Corporate tax registration deadlines for resident companies established before March 1
| Month of License Issuance – year the license was issued is irrelevant | Deadline to apply for Corporate Tax Registration |
| January or February | May 31, 2024 |
| March or April | June 30, 2024 |
| May | July 31, 2024 |
| June | August 31, 2024 |
| July | September 30, 2024 |
| August or September | 31 October 2024 |
| October or November | 30 November 2024 |
| December | 31 December 2024 |
* Source: Federal Tax Authority
What is the tax rate?
The UAE introduced the federal corporate tax with a standard statutory rate of 9 per cent starting from the financial year beginning on or after June 1, 2023.
It brought the income of companies exceeding Dh375,000 ($102,110) within the taxable bracket. Taxable profits below that level will be subject to a tax of zero per cent.
In May, the Ministry of Finance confirmed that business owners in the country would be subject to corporate tax only if their turnover in a calendar year exceeds Dh1 million, ensuring that only business or business-related activity income is taxed.
That means that a business owner or entrepreneur making Dh500,000 from their business in a calendar year would not pay tax on their earnings.
How to register?
UAE businesses subject to corporate tax are required to register and obtain a tax registration number. Generally, the registration application must be submitted to the Federal Tax Authority.
Taxable businesses must file a tax return to the FTA no later than nine months after the end of the financial year.
- Source / Read more at: Click Here
- Knowledge Bucket for NRI’s
- Unlike residents, NRIs are not required under the law to pay tax on overseas earnings or declare foreign assets. However, if they overstay – spending more than 181 days in a year in India – tax and disclosure regulations, as related to residents, apply to them.
- Apart from the 181 days criteria, some of the NRIs have to also watch out for another change in law linked to residency. Following an amendment to the I-T Act 3 years ago, an NRI visiting India and spending more than 120 days (but less than 182 days) is treated as ‘resident but not ordinary resident’ (or, RNOR) if such a person’s ‘total income’ – i.e. , gross income post deductions – arising from India is ₹15 lakh or more. Like an NRI, an RNOR neither has to pay tax on foreign income nor disclose foreign assets. However, if an RNOR is not a tax resident of any other country, then his foreign earnings are taxed in India, even though the foreign assets need not be disclosed in ITRs.
- Do you know ??
- The government hiked the windfall tax on petroleum crude to ₹4,600 a metric ton from ₹3,300 with effect from March 1, according to a government order released on Thursday, February 29. The government also cut the windfall tax on diesel to zero from 1.50 per litre effective March 1, the order showed. The tax on petrol and aviation turbine fuel will continue to be zero.
- The BBMP has been making its intent to improve property tax collection for years and has set a target of ₹4,470 crore for 2024-25, which is 26% higher than the revised estimates for 2023-24
- The 13th Ministerial conference of the World Trade Organisation (WTO) late Friday decided to extend the moratorium on taxation of cross border electronic transmissions for another two years but could not take any decision on a permanent solution on public stockholding of foodgrains for food security and fisheries subsidies which were key Indian demands.
- Bengaluru is set to see a sharp rise in property tax after the local municipal corporation Bruhat Bengaluru Mahanagara Palike (BBMP) proposed guidance value-based tax collection. The proposal will likely push up already soaring apartment rentals, experts have said. According to the new draft notification, the property tax will be collected based on the guidance value or circle rates in the areas.
- 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.)
| To subscribe us / Feedback: Email us cslalitrajput@gmail.com & caheergajjar@gmail.com Contact numbers: +91 9625483520 |
