Kartik & Associates

13/01/2025

💔 Grieving a Loss, Yet Burdened with Compliance: A Harsh Reality for Legal Heirs

The loss of a loved one is a deeply emotional and overwhelming experience. Amidst this grief, legal heirs are required by law to file the deceased's income tax return before the due date — and there is no waiver of late filing fees under Section 234F of the Income Tax Act.

📑 Section 159 of the Income Tax Act, 1961 treats legal heirs as representatives of the deceased, making them responsible for filing pending tax returns, paying taxes, and settling any dues, including penalties.

Imagine navigating tax compliance while dealing with personal loss. Is it time for a more compassionate approach from tax authorities? Shouldn’t there be a waiver of late fees or an extension of deadlines in such situations?

💡 A call for reform: The tax system must balance compliance with empathy. Let’s hope for policy changes that provide grieving families some breathing room during difficult times.

What are your thoughts? Should there be a more considerate approach to such cases? Let's discuss. 👇

19/11/2024

⏳ Time is running out – Claim your pending ITC Today!⏰

The deadline to claim your pending ITC for FY 2023-24 is 30th November 2024, or the filing of your October 2024 GSTR-3B, whichever comes first. That means your deadline really is 20th November 2024 (without a late fee)

Send a message to learn more

19/06/2024

File your income tax return for FY 23-24
Due date for filing the same is 31/07/2024

20/02/2024

Consequent to the finance minister's budget speech, the Central Board of Direct Taxes (CBDT) released an order to remit and extinguish the tax demands under the Income-tax Act, Wealth Tax Act, or Gift Act. The tax demand shall be waived off subject to maximum ceiling of Rs. 1 lakh for any specific taxpayer.

14/02/2024

17 updates in the latest ITR Forms released for FY 2023-24:

1. Filing Deadlines: Taxpayers now have a new column in Forms ITR 3, 5 and 6 where they specify the deadline for filing returns.

2. Online Gaming Winnings Taxation: Schedule OS has been amended to include reporting of income from online gaming in form ITR 2, 3, 5 and 6.

3. Adjustment of Unabsorbed Depreciation: The new provisions allow for the adjustment of unabsorbed depreciation in Form ITR 3 and 5.

4. LEI Details: Legal Entity Identifier (LEI) disclosure is now mandatory for refunds exceeding INR 50 crores in Form ITR 2, 3, 5 and 6.

5. Political Party Contributions: Schedule 80GGC will require detailed disclosure of political party contributions in Form ITR 2, 3, 5 and 6.

6. Cash Receipts Reporting: A new column for cash receipts reporting has been added to claim an enhanced turnover limit in Form ITR 3, 4 and 5.

7. Start-up Deduction Details: New Schedules for claiming deductions under Sections 80-IAC and 80LA have been introduced in Form ITR 5 and 6.

8. Dividend Income Reporting: dividend income received from a unit in an International Financial Service Centre shall be taxed at a reduced tax rate of 10% instead of 20%. Schedule OS has been amended in new ITR forms to incorporate such change in Form ITR 2, 3, 5 and 6

9. ESOP Tax Benefits: Enhanced reporting requirements for Employee Stock Option Plans (ESOPs) needs disclosure of PAN and DPIIT Registration Numbers in Form ITR 2and 3

10. EVC for Tax Audits: Individuals and HUFs under tax audits (ITR 3) can now verify returns using Electronic Verification Code (EVC). This simplifies the verification process and enhances ease of compliance.

11. Reasons for Tax Audit: Additional details are required from audited companies in Form ITR 3, 5 and 6 regarding the circumstances necessitating tax audits. This change enhances transparency and accountability in tax reporting.

12. Business Trust Sums Reporting: A new column under Schedule OS allows for reporting sums received by unitholders distributed by business trust to avoid non-taxation in Form ITR 2, 3 and 5.

13. Bank Account Disclosure: Taxpayers must now disclose all bank accounts held, except dormant accounts in Form ITR 2,3 and 5.

14. CGAS Reporting: Detailed disclosure of deposits in the Capital Gains Accounts Scheme is now required in Form ITR 2, 3. 5 and 6.

15. Deduction under Section 80CCH: A new column is introduced to claim deductions under Section 80CCH for Agniveer Corpus Fund in Form ITR 1, 2, 3 and 4.

16. New Schedule 80U: Schedule 80U is added for claiming deductions for persons with disabilities, seeking detailed information in Form ITR 3.

17. Schedule 80DD: Similar to Schedule 80U, Schedule 80DD is added to claim deductions for maintenance and medical tr ent of dependents with disabilities in Form ITR 2 and 3

09/02/2024

Section 43B(h)

Section 43B(h)-Payment based deduction for amount payable to micro and small enterprise

👉Applicable from AY 2024-25 onwards
-Not Applicable for Transaction pertaining to on or before 31/03/2023

👉Due Date for Payments
-15 Days from Date of Acceptance if No Written Agreement
-45 Days from Date of Acceptance if Written Agreement is there

👉Applicable for Amount payable to micro and Small Enterprise (MSE) who are manufacturers or service providers
-Not Applicable for amount payable to medium enterprises
-Not Applicable for amount payable to unregistered MSEs
-Not Applicable for amount payable to traders because their registration on UDYAM portal is for the purpose of priority sector lending only

👉Applicable for the amount payable for Goods & Services
-Not Applicable for actionable claims and money
-Not Applicable on Interest on Loans as it is not goods nor services
-Not Applicable on Salary as it is not goods nor services
-Not Applicable on Amount Payable for Capital Goods as it was not claimed as Expense

👉Definitions
-Buyer means whoever buys any goods or receives any services from a supplier for consideration
-Supplier means a micro or small enterprise, which has filed a memorandum with the authority referred to as u/s 8(1)
-Manufacture means processing of raw material or inputs in any manner that results in emergence of a new product having a distinct name, character and use

👉Not Applicable for Buyer filing ITR u/s 44AD/44ADA/44AE (Presumptive Taxation)
-These sections have overriding effect over section 28 to 43C, so section 43B(h) not applicable
-If buyers turnover below 10 Crore and Cash transactions is below 5% then audit u/s 44AB is not applicable but Books of Accounts are required to be maintain, in such cases section 43B(h) is Applicable

👉If Amount payable to MSE is liable to TDS and that TDS is also not paid to government then dis-allowance will be u/s 43B(h) only and not under section 40(a)(ia)

👉If Amount payable to MSE is inclusive of GST then dis-allowance will be limited to the amount exclusive of GST because GST was never claimed as expenses so it can't be dis-allowed as expenses.

06/02/2024

Is a GTA liable to register?

There was a lot of confusion about whether a GTA has to register under GST. As per Notification No. 5/2017- Central Tax dated 19/06/2017, a person who is engaged in making only supplies of taxable goods/services on which Reverse Charge Mechanism (RCM) applies is exempted from obtaining registration under GST.

Thus, a GTA does not have to register under GST if he is exclusively transporting goods where the total tax is required to be paid by the recipient under reverse charge basis (even if the turnover exceeds the threshold limit).
GST UPDATES GST INDIA All India GST Practitioner Association GST Professionals GST Updates

06/02/2024

Shiridi Sainadh Industries Vs Deputy Commissioner ST INT (Andhra Pradesh High Court)

Writ Petition is allowed and the impugned Assessment Order passed by the 1st respondent vide Ref. No.CGST/ 2017-18/05 dated 29.10.2018 in so far as it relates to the levy of GST on the value of by-products i.e., broken rice, bran and husk treating them as part of the consideration paid to the petitioner for milling of the paddy, is set aside.

Shiridi Sainadh Industries Vs Deputy Commissioner ST INT (Andhra Pradesh High Court) Writ Petition is allowed and the impugned Assessment Order passed by the 1st respondent vide Ref. No.CGST/ 2017-18/05 dated 29.10.2018 in so far as it relates to the levy of GST on the value of by-products i.e., bro...

06/02/2024

Changes in GSTR-1 effective from January, 2024.

- Two new Tables -14 and 15 have been added to GSTR-1.
Table 14 – Supplies made through E-Commerce Operators (In this table, taxpayers can add details of taxable outward supplies made through e-commerce operator.)
Table 15 – Supplies under Section 9(5) of the CGST Act [In this table, taxpayers can add details of taxable outward supplies on which the E-Commerce Operator is liable to pay tax under Section 9(5)]. Till now, GSTR-1 was not having specific tables for reporting these transactions separately. As a result, Table 3.1.1 in GSTR-3B was not auto-filled due to the absence of corresponding reporting sections.

W.e.f. January 2024, GSTR-1 has introduced Tables 14 and 15 specifically designed for reporting supplies on which E-Commerce Operators are liable to pay tax. This modification ensures accurate auto-filling of Table 3.1.1 in GSTR-3B for both, suppliers and e-commerce operators. In GSTR – 3B, Table 3.1.1 addresses supplies notified under Section 9(5) of the CGST Act, 2017. This table requires suppliers and E-Commerce Operators (ECOs) to separately report supplies on which the E-commerce Operator is liable to pay tax.

Stay informed on crucial updates from GSTN in January 2024. Explore changes in GSTR-1, new payment options, HSN Code advisories, and more. Keep your compliance up-to-date.

06/02/2024

During the month of January, 2024 following advisories have been issued in relation to the various compliances:

- Changes in GSTR-1
- GST payments through cards
- Advisory on HSN Code –E-way Bill System
- Advisory on introduction of new Tables 14 & 15 in GSTR-1
- Notices & Orders on GST Portal
- GST payment by UPI option
- New Functionality for LUT on GSTN
- Advisory on payment of GST
- GSTN Advisory on Bank Details

Stay informed on crucial updates from GSTN in January 2024. Explore changes in GSTR-1, new payment options, HSN Code advisories, and more. Keep your compliance up-to-date.

06/02/2024

GST officials detect 14,597 tax evasion cases in Apr-Dec: Govt informs LS

GST officers are using data analytic and artificial intelligence tools like Business Intelligence and Fraud Analytics to identify risky taxpayers suspected of passing or availing fake input tax credits, Parliament was informed on Monday.

In a written reply to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said a total of 14,597 cases of Goods and Services Tax (GST) evasion have been registered by central tax officers during April-December 2023.

GST intelligence officers have detected fake input tax credit (ITC) cases worth Rs 18,000 crore in April-December of the current fiscal and arrested 98 fraudsters/ masterminds.