IPad is not a computer for depreciation purposes: ITAT Amritsar

Income Tax
IPad is not a computer for depreciation purposes: ITAT AmritsarM/s Kohinoor Indian (129 taxmann. com 396 (Amritsar - Trib.)[16-08-2021])Facts:1. The issue before the ITAT was whether the iPad falls in the definition of computer or mobile phone. 2. If an iPad falls in the definition of computer then a high rate of depreciation ie 40% is allowable however if it falls within the definition of mobile phone then the lower rate of depreciation is allowable ie 15%.The ITAT held as below:1. Depreciation at lower rate is applicable on iPad as it is not a computer. Predominate purpose of iPad is communication and not use as a computing device as its main features are email, whatsapp, Facetime calls, calls, music, films etc. Though iPad may discharge some functions of computers, it…
Read More

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…
Read More

Forms 15CA/15CB can be filed manually till 15-08-2021: CBDT

Income Tax
In view of difficulties faced by taxpayers in electronic filing of Forms 15CA/15CB on www.incometax.gov.in. The CBDT has decided that taxpayers can submit the aforesaid Forms in manual format to the authorized dealers till June 30, 2021. Said date was extended to July 15, 2021. Now, the board has given further relaxation and allowed manual filing of Forms till August 15, 2021. Source: 20 Jul 2021 | PRESS RELEASE | Income Tax
Read More

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…
Read More

Revalidation of 12A/12AA and 80G for Trusts and NGO

Income Tax
Revalidation of 12A/12AA and 80G for Trusts and NGO The Central Board of Direct Taxes, on the 26th of March 2021, notified the much-awaited forms, procedures, and required list of documents for organisation who are holding registration under section 12A/12AA/10(23)/35/80G(5).The Income-tax (6th Amendment) Rules, 2021 shall come into force from 1st April 2021.For Who: NGOs already registered under section 12A or 12AA or 10(23) and have an 80G certificate must file form 10A. This form shall be furnished electronically and verified using a digital signature or through an EVC as applicable.Forms: The person who’s authorised to verify the income tax returns shall verify the Form 10A.By when:Organisations with existing registrations under section 12A/12AA shall file the application within three months from the 1st day of April 2021. (i.e. before 30th…
Read More

Major Income Tax Proposals in Budget 2021

Budget, Income Tax
Major Income Tax Proposals in Budget 2021 1. No Income tax returns for senior citizen of 75 year or above age where the total income consist only of pension and interest income 2. Income tax returns will have prefill data of capital gains from listed securities, post office interest, Interest income, Salary etc,. 3. Increase in tax audit limit from Rs. 5 crore to Rs. 10 crore if more than 90% transactions are made digital mode and increase in tax Audit Exemption Limit for NRIs who carry out 95% of their transaction digitally, to Rs. 10 crores 4. Introduction of Faceless for Income tax appellate tribunal. A National Faceless Income Tax Appellate Tribunal Center to be constituted, wherein all communication between the Tribunal and the Appellant shall be electronic. Where…
Read More

FY 1920 Tax Returns and Tax Audit Due Dates extended

Income Tax
FY 1920 Tax Returns and Tax Audit Due Dates extended The extended Due Dates are as below: Income Tax Returns FY1920 Non Audit Cases - 31 Dec 2020Income Tax Returns FY1920 Audit Cases - 31 Jan 2021Income Tax Returns FY1920 Patners whose Firms are required to be audited - 31 Jan 2021Tax Audit Report FY1920 - 31 Dec 2020Audit Reports w.r.t to Domestic / International Transactions - 31 Dec 2020Payment of Self Assessment for FY 1920 where Tax Liability is upto Rs. 1 Lacs - 31 Jan 2021
Read More