Green Sparkle Consulting

Green Sparkle Consulting TAX ADVISORY | CONSULTING | CORPORATE AND STATUTORY COMPLIANCE

Whether you are starting your own business or managing an existing one, Green Sparkle Consulting is the one - stop solution for all your business & accounting needs. Be it sole-ownership, partnership firms or others, rely on our specialized team for all your requirements.

30/03/2026

Effective 1 April 2026, the 1961 Act will be repealed. However, its provisions will continue to govern all tax years beginning before 1st April, 2026. Accordingly:
(i)
The Income-tax Department’s e-filing portal will facilitate compliance under both the old and the new Acts concurrently.
(ii)
Taxpayers filing returns for AY 2026–27 (pertaining to the period governed by the old Act) in July 2026 will do so using the forms prescribed under the old Act. At the same time, advance tax payments for Tax Year 2026–27, commencing from June 2026, will be made in accordance with the new Act.
(iii)
All assessments, appeals, and other proceedings relating to earlier years will continue to be conducted under the old Act until their final resolution.

26/03/2026

Rights, benefits, obligations or liabilities that arose under the old Act continue to exist. For instance, if a taxpayer was entitled to claim a refund under the old Act for any tax year prior to the commencement of the new Act, he still remains entitled to that refund even after the new Act comes into force.

Approvals are not inconsistent with the provisions of the new Act, they are treated as if granted under the new Act.
For example, a charitable trust recognized under the old Act will be treated as recognized under the corresponding provision of the new Act, unless there is a conflict with the provisions in the new Act.

If the assessing officer initiated assessment of a taxpayer’s income for assessment year 2024–25 before the new Act comes into force, that entire assessment and other proceedings will be completed under the provisions of old Act.

# Income Tax Act 2025

25/03/2026

Existing Permanent Account Number, Tax Deduction Account Number (TAN), faceless assessment, faceless appellate framework, etc., shall continue under the Income Tax Act 2025.

# Income Tax Act 2025

24/03/2026

In the Income tax Act, 2025, in place of the term ‘previous year’, the term ‘tax year’ has been used. Further, the use of term ‘assessment year’ has been discontinued.‘tax year’ is a period of twelve months contained in a financial year. It replaces the term ‘previous year’ used in the Income-tax Act, 1961.
The concept of “Tax Year” is applicable from 01 April 2026, i.e., for income earned during FY 2026-27 onwards and this will be referred to as Tax Year 2026-27 under the Income Tax Act 2025.

# Income Tax Act 2025

29/03/2025

🚨 Did you receive an SMS from the Income Tax Department? 🚨
Wondering why you’re getting this now? 🤔
Didn’t the CPC process your return already? 📅
Does this mean you’ll get a notice? 📜

Don’t worry! Read on to get your basic questions answered about this SMS campaign! ⬇️

The SMS you might have received:
"Dear Taxpayer M######, PAN (ABCP###XD),
It is observed that you have claimed an exemption for HRA under section 10(13A) of Rs 5###XX and Rs 5###X in your ITR for A.Y. 2023-24 and AY 2024-25 respectively. However, no TDS has been deducted on the rent paid. It is requested that the claim may be verified and any mistake, if found, may be rectified by filing the updated ITR by 31.03.2025.
Income Tax Department"

What does this mean? 🤷‍♂️
1️⃣ SMS Campaign: This is part of an Income Tax Department initiative to verify HRA claims after analyzing taxpayers’ Income Tax Returns.

2️⃣ HRA Exemption: If you've claimed HRA exemption under section 10(13A) of ₹3.5L+ annually, there's a good chance your rent payments exceed ₹6L annually (₹50K/month), triggering TDS requirements under section 194IB. 🏠💸

3️⃣ Form 26QC: If your rent payments are high but you haven't filed Form 26QC (TDS payment statement), the ITD wants you to rectify the claim. 📑

4️⃣ Genuine Claims: If your monthly rent is below ₹50K, there’s nothing to worry about! You don’t need to deduct TDS in the first place. 🙅‍♀️

5️⃣ Non-Compliance: If your rent exceeds ₹50K/month, but you haven’t filed Form 26QC, there might be penalties or interest for non-compliance if the department issues a notice. ⚠️💰

Why now? ⏳
The deadline for submitting updated returns for FY 2021-22 is 31st March 2025. 🚨 The Income Tax Department hopes taxpayers will voluntarily rectify any errors in HRA claims before then.
Miss this opportunity, and you won't be able to file an updated return for FY 2021-22! 😬

What’s the intention? 🎯
This SMS campaign is all about increasing tax collections through updated returns. The government is hoping taxpayers will make adjustments before the deadline and pay any differential tax due. 💼💵

What should I do? ✔️
🔍 Double-check your HRA exemption claims:
- Ensure your claim is within the limits of section 10(13A).
- Have your rental agreement and rent receipts in order.
- If everything is correct, no action is required. You’re good to go! ✅
- If correction is ready, then can do the same by filing an updated return.

09/01/2025

*REALTIME* Updates

1. *Family trusts face new limits:* Cousins & non-relatives no longer eligible as 'beneficiaries' Family trusts, often used to ring-fence wealth and enable smoother succession planning by ageing patriarchs of Indian households, will not have the freedom to add cousins, nephews, niece, or other `non-relatives’ as ‘beneficiaries’ in future.

2. *If a trust deed gives trustees* the liberty to include such persons even years later, the trust could be taxed today on all properties, securities and funds that have been transferred to it, according to a judicial pronouncement this week.

3. *A discretionary trust is formed by the settlor* (often the head of the family who transfers the assets). Immediate family members are named as beneficiaries, and independent professionals or a trusteeship company serve as trustees responsible for distributing a trust's earnings from like interest, rent, and capital gains to the beneficiaries in proportions that are not predetermined.

4. *Union Home Ministry on Wednesday (January 1, 2025)* notified that chartered accountants filing audit returns on behalf of NGOs need to specify if the association violated provisions of the Foreign Contribution (Regulation) Act, 2010 (FCRA) or not.

5. *The Act requires a CA to certify* if an association or NGO has utilised foreign contribution received for the purposes it was registered for and the annual statements are to be uploaded on the FCRA portal.

6. *In a December 31 notification, the Ministry said that CAs* will have to mention the name, email address, registration number of the auditor while issuing the audit certificate and specify if the NGO has “violated the provisions of FCRA, 2010 or rules made thereunder or notifications issued thereunder,” with the details of the violations

21/12/2024

Important GST Update

Alert your clients! After GST registration is approved, the Department will send the letter by registered post to the registered address.

Key point: If the door is locked or no one is available to receive the post, the registration will be cancelled automatically (suo-moto).

Please advise your clients to:

1. Track postal letters regularly
2. Ensure someone is available to receive the post
3. Avoid cancellation of GST registration

Stay informed, stay compliant!

30/09/2024

Here are the key changes in direct taxes and GST applicable from 1st October 2024:

Direct Tax Changes (TDS)
Several amendments to TDS (Tax Deducted at Source) rates are effective from 1st October 2024:
1. Life Insurance Payouts (Section 194DA): TDS on payouts from life insurance policies, excluding amounts exempt under Section 10(10D), has been reduced from 5% to 2%.
2. Commission on Sale of Lottery Tickets (Section 194G): The TDS rate on commissions related to the sale of lottery tickets is reduced from 5% to 2%.
3. Brokerage/Commission Payments (Section 194H): TDS on brokerage or commission payments is reduced from 5% to 2%.
4. Rent Payments (Section 194IB): TDS on rent exceeding ₹50,000 per month is reduced from 5% to 2%.
5. Purchase of Immovable Property (Section 194IA): Clarification on TDS: If property value exceeds ₹50 lakhs, even if divided between multiple buyers or sellers, TDS applies on the total value.
6. E-commerce Transactions (Section 194O): TDS on payments by e-commerce operators has been reduced from 1% to 0.1%(

GST Changes
Several updates in GST are introduced through the Finance (No. 2) Act, 2024:
1. Removal of Input Tax Credit (ITC) Blockage: The restriction on availing ITC for taxes paid under demand and recovery provisions is removed from FY 2024-25 onwards.
2. Reverse Charge Mechanism: Amendments under Section 31(3)(f) now prescribe a specific time for issuing invoices for reverse charge supplies from unregistered persons.
3. Mandatory GSTR-7 Filing: All persons required to deduct TDS must file GSTR-7, even if no deductions are made in a particular month.
4. Refund Provisions: Refund restrictions for the CGST portion under duty drawback are removed, and no refunds will be allowed for export duty cases involving zero-rated supplies.
5. Appeal Pre-deposit Changes: The pre-deposit amount for filing appeals before the Appellate Authority is reduced from ₹50 crores to ₹40 crores

These updates aim to streamline tax collection and compliance, impacting various sectors, including insurance, real estate, e-commerce, and exports.

28/09/2024

2 MAJOR CHANGES IN AVAILMENT OF ITC BACK DATED

Effective September 27, 2024, via Notification No. 17/2024 - CT, two key changes have been made to Section 16 of the CGST Act:

1. Section 16(5): Allows taxpayers to claim ITC for invoices/debit notes from FY 2017-18 to FY 2020-21 in returns filed till November 30, 2021*, overriding earlier deadlines.

2. Section 16(6): Taxpayers with canceled but later reinstated registrations is now allowed to claim ITC for transactions during the cancellation period, up to November 30 of the next financial year or the revocation date, whichever is later.

Also Sec 150 is effective from 27 Sep 24 wherein tax paid or ITC reversed prior to above sec being applicable shall not be refunded

IMPACT ON TAX PAYER
These changes can help him a lot while currently litigating cases related to FY 17-18 to FY 19-20

21/08/2024

🏠 Understanding the Karnataka Apartment Ownership Act (KAOA), 1972 🏠

The KAOA Act is a game-changer for apartment owners in Karnataka. Here’s why it’s essential:

1️⃣ Legal Ownership: Clear title for individual apartments and joint ownership of common areas like lobbies and gardens. 🏢

2️⃣ Apartment Owners’ Association: Mandatory formation of associations for democratic governance and property management. 🤝

3️⃣ Common Areas Defined: Clear ownership and maintenance rules for shared spaces. 🌳

4️⃣ Uniform Maintenance: Establishes standards and ensures fair contribution from all owners. 🛠️

5️⃣ Dispute Resolution: Provides a legal framework for resolving disputes and protecting owners’ rights. ⚖️

6️⃣ Transparency: Full disclosure requirements during transactions for legal protection. 📜

7️⃣ Protection Against Unauthorized Changes: Restrictions on modifications to maintain aesthetics and structure. 🏗️

8️⃣ Facilitation of Loans: Clear title makes it easier to secure financing for your apartment. 💰

9️⃣ Mandatory Compliance: Ensures all owners adhere to rules and regulations for orderly management. 📏

🔟 Long-Term Sustainability: Promotes future-proofing and high community living standards. 🌟

The KAOA Act is designed to safeguard your rights, ensure fair management, and maintain the quality of your living environment. 🏡✨

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Bangalore
560050

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9986082164

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