Statutory Updates

Press Release - In a major move towards taxpayer facilitation, Government rolls out facility of filing of NIL GST Return through SMS.

For MSME registration, contact 9696722698

Measures for support to MSME announced by FM Smt. today are:

➡️Rs 3 lakh cr Collateral-free Automatic Loans for Businesses, including MSMEs
➡️Rs 20,000 cr Subordinate Debt for Stressed MSMEs
➡️Rs 50,000 cr Equity infusion for MSMEs through Fund of Funds
(2/2)
➡️ New Definition of MSMEs
➡️Global tenders to be disallowed upto Rs 200 cr
➡️Other interventions for MSMEs

Two Major Amendments Proposed in Finance Bill, 2017 before passing it in parliament:
1. Amendment in Sec.269ST: Sec 269ST was inserted in finance bill to provide that no person shall receive amount of Rs. 300000 or more otherwise than by A/c payee cheque/ bank draft/ electronic payment :
• In aggregate from a person in a day;
• In respect of a single transaction.
• In respect of transactions relating to one event.
The Limit of Rs. 300000 has been reduced to Rs. 200000 by making amendment in proposed finance bill. Thus any receipt of Rs. 2 Lakh or more in cash will attract 100% Penalty in hands of recipient with effect from 1st April, 2017.
2. AADHAR Card is proposed to be made Mandatory for Income Tax Return Filing.

One Time AIR by Banks

Banks to e-file details of deposit in excess of 2.50 lacs in savings & 12.50 lacs in current accounts from 9.11.16 to 30.12.16.

Last Date : 31.1.2017.

----------------------------------------------
Yearly AIR for other transactions
Last Date : 31.5.2017.

These transactions include purchase of property for more than Rs 30 lacs etc.

Tax Audit cases

Assessees to whom tax audit is applicable also have to give details in AIR for following transactions :

Receipt of cash payment exceeding 2 lakh rupees for sale, by any person, of goods or services of any nature (other than those specified where different limits exist like property purchase of more than 30 lacs etc. which have to be reported in AIR).

People like jewellers will also have to file AIR in such cases.

----------------------------------------------

Communication from IT dept regarding filing AIR

Dear Taxpayer,

The facility to register in e-Filing portal is available for furnishing statements in Form 61A in addition to Form 61.

Form 61A- Statement of Specified Financial Transactions as per section 285BA(1) of the Income-tax Act, 1961. The process for registration to furnish Form 61A is given in Notification No.13/2016

Form 61 - Statement containing particulars of declaration received in Form No. 60. Click here to know the step by step procedure for registration and upload of Form 61 in e-Filing portal.

The Notification No. 95/2015 and the Notification No. 104/2016 specify the circumstances and the persons required to furnish Form 61 and Form 61A.

Regards,
e-Filing Team,
Income Tax Department

*GST Enrollment Schedule:*

1. Enrollment of Taxpayers who are registered under Central Excise Act but not registered under State VAT - Enrollment Start Date 05-01-2017

2.Enrollment of Taxpayers who are registered under Service Tax Act but not registered under State VAT – Enrollment Start Date 09-01-2017

3.New registration under VAT/Service Tax/Central Excise after August 2016 - Enrollment Start Date 01-02-2017.

Presumptive Tax Rate of 6% for payments received in Digital Mode/ Banking channels in FY 2016-17 for Turnover upto 2 cr.

Press Release Ministry of Finance dated 19.12.2016

Government decides to reduce the existing rate of deemed profit under section 44AD of the Income Tax Act in respect of amounts/receipts through banking channel/digital means

Under the existing provisions of section 44AD of the Income-tax Act, 1961 (the Act), in case of certain assesses (i.e. an individual, HUF or a partnership firm other than LLP) carrying on any business (other than transportation, agency, brokerage and commission) and having a turnover of Rupees Two Crore or less, the profit is deemed to be 8% of the total turnover.

In order to achieve the Government’s mission of moving towards a less cash economy and to incentivise small traders / businesses to proactively accept payments by digital means, it has been decided to reduce the existing rate of deemed profit of 8% under section 44AD of the Act to 6% in respect of the amount of total turnover or gross receipts received through banking channel / digital means for the financial year 2016-17. However, the existing rate of deemed profit of 8% referred to in section 44AD of the Act, shall continue to apply in respect of total turnover or gross receipts received in cash.

Legislative amendment in this regard shall be carried out through the Finance Bill, 2017.

*****
MS/MSZ
(Release ID :155638)

*NEW SCHEME PROPOSED FOR DISCLOSURE OF INCOME:*

'Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) has been proposed for declaration of undisclosed income.

*Option I : Any Person declaring undisclosed income has to:*

*I. PAY TAX:*
Income tax - 30%
Penalty - 10%
Pradhan Mantri Garib Kalyan Cess - (33% on 30%) - 9.9%

*Total Tax payable - 49.9%*

AND

*II. MAKE DEPOSIT:*

*Deposit - 25%* of undisclosed income in:

- ‘Pradhan Mantri Garib Kalyan Deposit Scheme, 2016’
> AN *INTEREST FREE* Deposit Scheme
> lock-in period - *FOUR* years.

*Option II: If not disclosed under the above scheme:*

Sec. 115BBE (Amended):
Flat rate of tax @ 60%
+ surcharge @25% of tax - 15%
+ Penalty (Section 271AAC) - 7.5%
(If Assessing Officer determines income referred to in section 115BBE)

*Total Tax Payable - 82.5%*

P.S.: Amendment bill is in parliament. Will be effective from the date of presidential assent.

http://pib.nic.in/newsite/PrintRelease.aspx?relid=154450

Taxation Laws (Second Amendment) Bill, 2016 introduced in Lok Sabha; A scheme namely, ‘Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) proposed in the Bill. Evasion of taxes deprives the nation of critical resources which could enable the Government to undertake anti-poverty and development programmes. It also puts a disproportionate burden on the honest taxpayers who have to bear the brunt of higher taxes to make up for the revenue leakage. As a step f...

30% tax, 10% penalty, 33% surcharge proposed on undisclosed income in the Income Tax Amendment bill pushed by the government in Lok Sabha.