Tax Audit Criteria for FY 2020-2021

Audit, Income Tax
Introduction Section 44AB of the income tax act, 1961 lays down the conditions for applicability of tax audit. Tax Audit has been an important tool to increase the efficiency of tax administration and curb the menace of tax evasion. However, recently the government has taken many steps towards relaxing the compliance burden of small taxpayers and has been committed to increase the ‘ease of doing business’ .The provisions of applicability of tax audit have undergone major amendments vide Finance Act 2016 and 2020. Albeit the provisions were made to reduce the compliance burden, they have increased the confusion among the taxpayers regarding applicability of tax audit. The author tries to analyze the various provisions relating to applicability of tax audit so as to provide clarity on the subject. 1. Tax…
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Key Takeaways of 43rd GST Council Meeting held on 28th May, 2021

GST
Key Takeaways of 43rd GST Council Meeting held on 28th May, 2021 The 43rd GST Council meeting took place on 28th May, 2021 via video conferencing. The key takeaways of the meeting are:    a) In order to provide relief to the small taxpayers, an amnesty scheme has been recommended for reducing late fees payable.    b) Annual Return in FORM GSTR-9 will remain optional for small taxpayers for FY 2020-21    c) Import of COVID-related relief items including AmphotericinB (required for treating Mucormycosis), even if purchased or meant for donating to Govt. or to any relief agency upon recommendation of State authority, to be exempted from IGST till 31st August 2021    d) Group of Ministers to be formed quickly (by tomorrow), who will submit report by 8 June 2021; to examine need…
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CBIC has amended GST Rule 23 Revocation of cancellation of registration

GST
CBIC has amended GST Rule 23 Revocation of cancellation of registration Vide Notification No. 15/2021 Central Tax, dated 18th May, 2021 the amendment to Rule 23 is as under: Amendment in sub-rule (1) The amendment in section 30 made vide the Finance Act, 2021 has been made effective from 01.01.2021. The amended provision provides for extension of time limit for applying for revocation of cancellation of registration on sufficient cause being shown and for reasons to be recorded in writing, by: (a) the Additional or Joint Commissioner, as the case may be, for a period not exceeding thirty days; (b) the Commissioner, for a further period not exceeding thirty days, beyond the period specified in clause (a) above. Consequential amendment has been made in rule 23(1) to provide that the…
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CSR: Excess CSR paid in ‘PM CARES Fund’ for FY 2019-20 can be offset as CSR spent in F.Y. 2020-21

Company Law
CSR: Excess CSR paid in ‘PM CARES Fund’ for FY 2019-20 can be offset as CSR spent in F.Y. 2020-21 E-FILE NO. CSR-01/4/2021-CSR-MCA, Dated a21 May 2021 Keeping in view the spread of COVID-19 in India, an appeal dated 30.03.2020 was made to MDs/CEOs of top 1000 companies in terms of market capitalization, to contribute generously to “Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund” (PM CARES Fund). In the appeal, it was mentioned that such contribution may, inter-alia, include the unspent CSR amount, if any, and an amount over and above the minimum prescribed CSR amount for FY 2019-20, which can later be offset against the CSR obligation arising in subsequent financial years. The said appeal was uploaded on the website of the Ministry and sent to e-mails…
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Relief in GST Compliance for Mar21 and Apr21

GST
Relief in GST Compliance for Mar21 and Apr21 Lowering of interest rates for delayed payment of tax Notification No. 13/2017- Central Tax dated 28th June, 2017 has been amended vide Notification No. 08/2021-Central Tax dated 01st May,2021 to reduce the rate of interest for delayed payment of CGST (u/s 50 of the CGST Act, 2017) as under: Class of registered persons      Rate of Interest Applicable tax                periodTaxpayers whose aggregate turnover in the preceding FY > Rs. 5 crores9% for the first 15 days from the due date and 18% thereafterMarch, 2021, April, 2021Taxpayers whose aggregate turnover in the preceding FY ≤ Rs. 5 crores[Both taxpayers filing monthly returns and taxpayers filing quarterly returns under QRMP scheme]Nil for the first 15 days from the due date, 9% for…
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Due dates for taxpayer’s compliance extended; belated/revised ITR for AY 2020-21 can be filed by 31-05-2021

Income Tax
Due dates for taxpayer’s compliance extended; belated/revised ITR for AY 2020-21 can be filed by 31-05-2021 Circular No. 08/2021, dated 30-04-2021The Central Board of Direct Taxes (CBDT) has granted relief to taxpayer by extending due dates of certain compliances under the Income-tax Act. In view of severe pandemic, the board has provided that due date for completion of following Income-tax compliances by the taxpayers shall be 31-05-2021:1) Filing of appeal to CIT(Appeals). However, if the last date allowed by section 249 for filing of appeal before CIT(A) falls beyond 31-05-2021 then such later date shall be taken into consideration.2) Filing of objections to Dispute Resolution Panel (DRP) under section 144C. However, if the last date allowed by section 144C for filing of objections falls beyond 31-05-2021 then such later date…
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Union Cabinet approves Amendments to the Finance Act, 2021

Budget, Income Tax
Union Cabinet approves Amendments to the Finance Act, 2021 As per Press Release, dated 20-04-2021, The Union Cabinet has given ex-post facto approval for the Government amendments to the Finance Bill, 2021 which is enacted on 28-03-2021 as the Finance Act, 2021. These amendments were essential to clarify and rationalise the proposals further and address stakeholders concerns arising out of amendments proposed in the Finance Bill, 2021.Amendments to the Finance Act, 2021 are tax proposals that shall generate timely revenue for the Government and streamline existing provisions by addressing grievances of the taxpayers
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