Payal and Associates

16/11/2016

Amendment in Rule 114B for compulsory quoting of pan in case of cash deposit exceeding 50k in a single day or aggregating to more then 2.5 lakh during the period 09.11.16 till 30.12.16

Amendment in Rule 114E for filing AIR report as required u.s 285BA wrt reporting by banking company and a cooperative bank on account of aggregate cash deposits in one or more current account of a person in excess of Rs12.5 lakhs OR Rs2.5 lakh or more in one or more account of a person during 09.11.16 till 30.12.16.

15/11/2016

10/11/2016

Cash deposits above Rs 2.5 lakh threshold under the 50-day window could attract tax plus a 200 per cent penalty in case of income mismatch
Any mismatch with income declared by the account holder will be treated as a case of tax evasion

Income tax dept would be getting reports of all cash deposited during the period of November 10 to December 30, 2016, above a threshold of Rs 2.5 lakh in every account.

07/11/2016

India is all set to add one more denomination to its currencies shortly. The Reserve Bank of India (RBI) will be issuing Rs 2,000 currency notes, the highest to come into circulation, even as some experts feel7 high-value denominations should be discontinued to curb black money.

The Rs 2000 currency is designed keeping in mind to eradicate the black money issues using state of the art indigenous nano technology, every Rs. 2000 currency note is embedded with a *NGC (Nano GPS Chip)*

*How the embeded NGC Technology Works?*
The unique feature of the NGC is it dosent need any power source. It only acts as a signal reflector. When a Satellite sends a signal requesting location the NGC reflects back the signal from the location, giving precise location coordinates, and the serial number of the currency back to the satellite, this way every NGC embedded currency can be easily tracked & located even if it is kept 120 meters below ground level.

*Just a beginning of the end of black money in India*

03/11/2016

On Thursday GST council approved four main tax slabs ranging from 5% to 28% .

Announcing the GST rates, finance minister Arun Jaitley said the 5% duty was on items of mass consumption or aam aadmi products. "There will be standard rate of 12% and 18% on other items."

"To***co will fetch 28% tax, excluding cess. Aerated drinks will also fetch tax at the same rate. Most white goods to be taxed at 28% but with riders," the finance minister said.

The prices of certain consumer durables like televisions, air conditioners, fridges and washing machines may however become cheaper with decrease in taxes.

18/09/2016

Next month we are going to get feel of GST.
1: GSTN will begin issuing GST identity numbers (GSTIN) and generating passwords for these taxpayers from October 2016 onwards. GSTIN and password will be sent on registered email id of taxpayer with existing departments like VAT, service tax or excise.
2: Taxpayer can log on to GSTN familiarize them [with it] as well as provide us relevant additional information like -place and address of business, name(s) and photos of directors, or proprietors, and details of updated bank
As per section 142 of model GST law the taxpayers will have time up to six months after the roll out of GST to provide this information, but this move has been started to make taxpayers familiarize with GSTN and provide additional information before rollout.

16/07/2016

July 16, 2016
Gold/Silver rates as on June 1, 2016 to determine FMV under Income Declaration Scheme

Gold / Silver rates as on 1st June, 2016 are given hereunder:

Gold 10 gms 999 – Rs 29,075/-
Gold 10 gms 995 - Rs 28,925/-
Gold 10 gms 916 - Rs 26,633/-
Silver 999 1kg - Rs 38,910/-

14/07/2016

*CBDT Press Release dated 14-7-2016 on IDS*

The Income Declaration Scheme 2016 - Relaxation of time schedule for making payments under the Scheme


Taking into consideration the practical difficulties of the stakeholders, the Government has decided to revise the time schedule for making payments under the Scheme as under:

(i) a minimum amount of 25% of the tax, surcharge and penalty to be paid by 30.11.2016;
(ii) a further amount of 25% of the tax, surcharge and penalty to be paid by 31.3.2017; and
(iii) the balance amount to be paid on or before 30.9.2017.

A Notification to this effect shall be issued shortly.

19/05/2016

Service tax -Krishi Kalyan Cess
Important points

1. This Cess (KKC) is applicable only on taxable services

2. This Cess is applicable w.e.f. 01.06.2016

3. This cess is leviable on the value of services, thus, the effective rate of service tax would be 15%
w.e.f. 01.06.2016 (i.e. 14% as Service Tax, 0.5% as SBC and 0.5% as KKC)

4. This cess will not be applicable on non taxable services including the exempted services

5. This cess is to be disclosed separately on the invoice and paid separately

6. The cenvat credit of KKC shall be available and shall be utilized only for the payment of KKC

Thus, separate accounts needs to be maintained. (Proper amendment in Cenvat Credit Rules’
2004 is awaited)

7. Refund of this KKC shall also be allowed as the cenvat credit is there. Further, refund of this cess shall be allowed to Exporter of Service as well as Exporter of Goods as there is no restriction of its availment. Suitable amendment is awaited in CCR’2004 as well as refund notifications

8. This Cess shall be applicable only on the abated value in case of services covered under
abatement scheme

9. KKC shall also be applicable on the services covered under Reverse Charge Mechanism

10. Separate accounting codes for its payment shall be released soon

11. Rule 5 of Point of Taxation Rules’ 2011 need to be referred for its applicability in case of ongoing contracts on 01.06.2016.

Thus, if payment is made before 01.06.2016 then this cess is not applicable.

16/05/2016

From 1st May 2016, the TDS returns can be filed online on the incometaxefiling website. In the past, such returns could be filed online on TIN NSDL website from one's own offfice or home. This facility of filing online Return on TIN NSDL website has been withdrawn. If a Tax deductor is required to file a correction statement of TDS (Revised TDS return), then such statements in the past could be filed online with TIN NSDL. However after 1st May 2016 this facility is also withdrawn. As a result, such correction statements have to be filed through TIN facilitation centre only. Such statements cannot be filed online on incometaxefiling website. The online filing of such correction statements have a advantage of ease of filing from one's own office or home. Preparing such statements for filing with TIN facilitation centres involves time & money besides the inconvenience. Since the infrastructure is already available with TIN NSDL, request the Income Tax Department to restart accepting correction statements of TDS online through TIN NSDL. This will ease filing of such correction statements by Tax deductor. This facility could be stopped once incometaxefiling website starts accepting such correction statements online.

15/05/2016

Pay 45% Tax and declare undisclosed Income. From 01.06.2016 to 30.09.2016.

The Income Declaration Scheme, 2016 incorporated as Chapter IX of the Finance Act 2016 provides an opportunity to all persons who have not declared income correctly in earlier years to come forward and declare such undisclosed income(s).

Under the Scheme, such income as declared by the eligible persons, would be taxed at the rate of 30% plus a ‘Krishi Kalyan Cess’ of 25% on the taxes payable and a penalty at the rate of 25% of the taxes payable, thereby totalling to 45% of the income declared under the scheme.

The scheme shall remain in force for a period of 4 months from 1st June, 2016 to 30th September, 2016 for filing of declarations and payments towards taxes, surcharge & penalty must be made latest by 30th November, 2016. Declarations can be filed online or with the jurisdictional Pr. Commissioners of Income-tax across the country.

· The scheme shall apply to undisclosed income whether in the form of investment in assets or otherwise, pertaining to Financial Year 2015-16 or earlier.
· Where the declaration is in the form of investment in assets, the Fair Market Value of such asset as on 1st June 2016 shall be deemed to be the undisclosed income under the Scheme. However, foreign assets or income to which the Black Money Act 2015 applies are not eligible for declaration under this scheme.
· Assets specified in the declaration shall be exempt from Wealth tax.
· No Scrutiny and enquiry under the Income-tax Act or the Wealth tax Act shall be undertaken in respect of such declarations.
· Immunity from prosecution under the Income-tax Act and Wealth Tax Act is also provided along with immunity from the Benami Transactions (Prohibition) Act, 1988 subject to transfer of asset to actual owner within the period specified in the Rules.
· Non-payment of total taxes, surcharge & penalty in time or declaration by misrepresentation or suppression of facts shall render the declaration void.
· The circumstances in which the Scheme shall not apply or where a person is held to be ineligible are specified in section 196 (Chapter IX) of the Finance Act, 2016.
·

The Income Tax Department NEVER asks for your PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts through e-mail.