Home Page

The government is considering a proposal to contribute to the employees' share of the provident fund at companies with more than 100 workers. The scheme will cover only those earning a low salary.

If implemented, this will be an extension of the scheme under which the Union government is paying the EPF contribution of companies employing up to 100 workers of whom 90% earn less than ₹15,000 each per month.

“There is a proposal but the details are yet to emerge," said a government official requesting anonymity.

Government officials said there are a few possibilities under consideration – paying PF dues of workers earning up to ₹15,000 in all companies without the 90% rider; allowing companies employing up to 200 workers with 90% earning up to ₹15,000 per month; reducing the 90% salary rider to say 60% for companies having headcount of up to 100.

It is not known whether the government will contribute the entire 24% (both employers and employees share) of the EPF payment or a portion of it. Also, the scheme, if implemented, will be valid for three months.

The Income-Tax (I-T) department on Tuesday said computer generated emails sent to about 1.72 lakh assessees such as individual taxpayers, corporate and start-ups are “just a request for seeking an update” and “cannot be misconstrued” as a notice of recovery.

The CBDT was responding to certain observations made in social media that alleged I-T department is “pursuing recovery proceedings” and “using arm-twisting methods” by adjusting outstanding demands of the start-ups.
“These emails are auto-generated u/s 245 of the I-T Act in refund cases where there is any outstanding demand payable by the assessee,” it said. In case the outstanding demand has already been paid by the taxpayer or it has been stayed by higher tax authorities, the taxpayers are requested through these mails to provide the status update so that while issuing the refund, these amounts are not held back and their refunds are released forthwith, it added.

1. Interest for delay in payment of GST to be charged on the net cash tax liability w.e.f. 01.07.2017 (Law to be amended retrospectively).
2. Where registrations have been cancelled till 14.03.2020, application for revocation of cancellation of registration can be filled up to 30.06.2020 (extension of period of application as one-time measure to facilitate those who want to conduct business).
3. Relaxation to MSMEs from furnishing of Reconciliation Statement in FORM GSTR-9C, for the financial year 2018-19, for taxpayers having aggregate turnover below Rs. 5 crores
4. Due date for filing the Annual return and the Reconciliation Statement for financial year 2018-19 to be extended to 30.06.2020
5. Late fees not to be levied for delayed filing of the Annual return and the Reconciliation Statement for financial year 2017-18 and 2018-19 for taxpayers with aggregate turnover less than Rs. 2 crores
6. A new facility called ‘Know Your Supplier’ to be introduced so as to enable every registered person to have some basic information about the suppliers with whom they conduct or propose to conduct business
7. The dates for implementation of e-invoicing and QR Code to be extended to 01.10.2020.
8. Continuation of existing system of furnishing FORM GSTR-1 & FORM GSTR-3B till September, 2020

The deadline for linking of PAN with aadhaar has been extended several times, the latest being 31st of March 2020. The Supreme Court in September 2018 declared Aadhaar as constitutionally valid and held that the Biometric ID would be mandatory to claim any government subsidies or benefits.

Income Tax department has also said that those persons who do not link their PAN with aadhaar, their PAN will become inoperative after 31st of March 2020.

As of not the Interest on Delayed payment of tax as per the law is required to be computed on the Gross Tax Liability and the same was upheld by the Telangana High Court. The amendment to the act have already been carried out by a few states and some are in the process of amending the act. However, the computation of interest on the net tax liability shall be done propectively after the relevant state act has been amended.

Many dealers have filed their GST returns belatedly by paying late filing fee, however, have not computed and paid interest. The law has cast liabiity on the tax payer to assess and pay interest while filing belated returns.

In order to widen and deepen the tax net, the Finance Bill 2020 proposed to insert in section 206 of the Income Tax Act, sub-section (1H) to levy TCS on sale of goods. Section 206(1H) will be effective from 01st April 2020.

Section 206(1H) reads as under:

Every person, being a seller, who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding `50 Lakh in any previous year, other than the goods covered in sub-section (1) or sub-section (1F) or sub-section (1G) shall, at the time of receipt of such amount, collect from the buyer, a sum equal to 0.1% of the sale consideration exceeding `50 Lakh as income-tax:

Provided that if the buyer has not provided the Permanent Account Number or the Aadhaar number to the seller, then the provisions of clause (ii) of sub-section (1) of section 206CC shall be read as if for the words “5%”, the words “1%” had been substituted:

Provided further that the provisions of this sub-section shall not apply, if the buyer is liable to deduct tax at source under any other provision of this Act and has deducted such amount.

Explanation.––For the purposes of this sub-section,––

(a) “Buyer” means a person who purchases any goods, but does not include,––

A. The Central Government, a State Government, an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; or

B. A local authority as defined in the Explanation to section 10(20); or

C. Any other person as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein;

(b) “Seller” means a person whose total sales, gross receipts or turnover from the business carried on by him exceed `10 crore during the financial year immediately preceding the financial year in which the sale of goods is carried out, not being a person as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein.